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 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+0.32% 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-4.28% 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, Super Micro Computer, and Advanced Micro Devices rose about 6.5%, 4.8%, and 3%, respectively. Similarly, shares of Intel and Salesforce gained 5.7% and 1.3%, respectively.
– Rocio Fabbro contributed to this article