Stocks jumped Tuesday morning as wholesale inflation data rose less than expected, giving investors confidence that inflation is cooling off.
The Producer Price Index (PPI), a gauge of wholesale prices, rose by 0.1% in July, below the 0.2% anticipated by economists. Year-over-year, the headline PPI climbed 2.2%, down from June’s 2.7% rise, the Labor Department’s Bureau of Labor Statistics reported.
Attention now turns to Wednesday morning’s release of Consumer Price Index (CPI) data, which will provide some much-needed direction to the uncertain market after last week’s erratic fluctuations.
As the day ended, the Dow Jones Industrial Average jumped 1.04%, or 408 points, to 39,765. The tech-heavy Nasdaq $NDAQ and S&P 500 jumped 2.4% and 1.6%, respectively. Meanwhile, Treasury yields moved lower by 0.057 points to 3.852.
Starbucks soars and Chipotle sinks amid CEO poaching
Starbucks $SBUX (SBUX) stock jumped more than 24% by the end of the day as it announced that it would be replacing its chief executive, Laxman Narasimhan, with a food industry veteran. The coffee giant tapped current Chipotle $CMG (CMG) CEO Brian Niccol, who has helmed the fast-casual chain since 2018, as its new chief starting Sept. 9. Meanwhile, shares of Chipotle dropped over 7.5%.
AI and tech stocks are back in the game
On Tuesday morning, AI and tech stocks were among the top gainers. Nvidia $NVDA, Super Micro Computer, and Advanced Micro Devices rose about 6.5%, 4.8%, and 3%, respectively. Similarly, shares of Intel $INTC and Salesforce $CRM gained 5.7% and 1.3%, respectively.
– Rocio Fabbro contributed to this article