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.
Shortly after the market opened Tuesday, the Dow Jones Industrial Average jumped 0.6%, or 251 points, to 39,608. The tech-heavy Nasdaq and S&P 500 jumped 1.4% and 0.9%, respectively. Meanwhile, Treasury yields moved lower by 0.047 points to 3.864.
Starbucks soars and Chipotle sinks amid CEO poaching
Starbucks (SBUX) stock jumped more than 21% at market open Tuesday after it announced that it would be replacing its chief executive, Laxman Narasimhan, with a food industry veteran. The coffee giant tapped current Chipotle (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 12%.
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 4%, 2.3%, and 2.2%, respectively. Similarly, shares of Intel and Salesforce gained 2% each.
– Rocio Fabbro contributed to this article
