U.S. Indexes Trade Volatile After Producer Price Inflation Accelerates to a Three-month High

Barry Adams
11 Apr, 2024
New York City

Stock market indexes were flat in early trading on Thursday, and investors reviewed the producer price index update. 

The S&P 500 index and the Nasdaq Composite traded sideways in quiet trading as investors reviewed two inflation reports over two days. 

The producer price index rose 2.1% from a year ago. In March, it inched higher by 0.2% on the month, the U.S. Bureau of Labor Statistics reported Thursday. 

Monthly producer prices rose at the slowest pace in three months, following a 0.6% rise in February and a 0.4% increase in January. 

Producer prices increased in March, driven by a 0.3% rise in services, and goods price inflation decreased by 0.1% after rising 1.2% in the previous month. 

The core producer price index, which excludes food and energy prices, rose 0.1% on the month and increased 2.4% from a year ago. 

On Wednesday, consumer price inflation accelerated to a three-month high. 

Consumer price inflation in March accelerated to an annual pace of 3.5% and advanced 0.4% for the month, the U.S. Bureau of Labor Statistics reported Wednesday. 

Annual inflation accelerated for the second month in a row to 3.5% in March, up from 3.2% in February and 3.1% in January. 

Core inflation, which excludes food and energy prices, held steady at 0.4% from the previous month and rose 3.8% from a year ago in March. 

 

U.S. Indexes and Yields

The S&P 500 index increased 0.02% to 5,162.49, and the Nasdaq Composite rose 0.3% to 16,238.15. 

The yield on 2-year Treasury notes edged higher to 4.94%, 10-year Treasury notes inched up to 4.53%, and 30-year Treasury bonds edged up to 4.63%.

WTI crude oil increased $0.83 to $85.41 a barrel, and natural gas prices decreased 4 cents to $1.83 a thermal unit.

Gold increased by $5.09 to $2,341.46 an ounce, and silver rose 9 cents to $28.02. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.11.

 

U.S. Stock Movers

CarMax declined 7.2% to $73.65 after the used car retailer reported weaker-than-expected quarterly results. 

Vertex Pharmaceuticals edged up 0.6% to $400.0 after the company agreed to acquire Alpine Immune Sciences for $4.9 billion in cash, or about $65 per share. 

Alpine Immune soared 36% to $64.21.

Regional banks were in focus after Treasury yields advanced following two inflation reports over the last two days. 

New York Community Bancorp traded near its low for the year at $2.96, Western Alliance declined 0.1% to $57.32, and MVB Financial dropped 0.3% to $19.78.