US stock indices higher after PPI calms inflation fears

The major US stock indices are opening higher led by the NASDAQ and after PPI data came in modestly lower than expectations .

The latest government reports show a mixed picture of inflation, with a discrepancy between the consumer and producer price indexes. While consumer prices rose more than expected, causing concern and negatively affecting the stock market, producer prices showed a smaller-than-expected increase, which helped market recovery.

The unexpected rise in consumer prices raises questions about the accuracy of economic predictions, particularly regarding inflation and Federal Reserve interest rate decisions. WIth one canceling the other, the markets have stalled the fall and are marginally higher. Yesterday, the Dow industrial average fell -1.09%, the S&P fell -0.95%, and the NASDAQ index fell -0.84%. The small-cap Russell 2000 fell the most with a decline of -2.52%.

A snapshot of the major indices currently shows:

• Dow industrial average is trading above and below unchanged. It is currently down -15 points or -0.03%
• S&P index is trading up 8.54 points or 0.17% at 5169.50
• NASDAQ index is trading up 68 points or 0.41% at 16237

The small-cap Russell 2000 indexes trading up up 9.48 points or 0.47% at 2037.87

In the US debt market, yields are lower today (they were marginally higher at the start of the US session and before the PPI)

• 2-year yield 4.931%, -3.8 basis points
• 5-year yield 4.574%, -3.9 basis points
• 10-year yield 4.525%, -3.5 basis points
• 30-year yield 4.62% -1.2 basis points

in other markets:

• Crude oil is trading down $0.54 or -0.63% at $85.68
• Gold is trading up $9.50 or 0.41% at $2342.26
• Silver is trading up $0.20 or 0.71% at $28.09
• Bitcoin is trading at $70,679. The low the day was $69,865.. The high was at $71,287

This article was written by Greg Michalowski at www.forexlive.com.