[New York Stock Exchange] PPI Flat, Rate Hike Expectations Recede Partially... S&P 500 Hits New High

International Oil Prices Close Lower
SK hynix ADR Surges 7%

As the Producer Price Index (PPI) for July remained flat, marking a slowdown for the second consecutive month, expectations for a September rate hike partially receded, and all three major U.S. stock indices on the New York Stock Exchange closed higher on August 13 (local time).

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average ended at 53,839.99, up 69.72 points (0.13%) from the previous trading day. The S&P 500 index, which focuses on large-cap companies, rose 50.49 points (0.65%) to 7,798.99, while the tech-heavy Nasdaq index climbed 214.53 points (0.81%) to close at 26,803.02.

New York Stock Exchange, New York (USA) – Photo by Yoonju Hwang

On this day, U.S. stock markets saw an increase in demand for risk assets, as the July PPI showed no change from the previous month, easing concerns over further rate hikes.

The U.S. Department of Labor’s Bureau of Labor Statistics announced that the July PPI was unchanged (0.0%) from the previous month. This figure was below the 0.2% predicted by experts surveyed by Dow Jones. Year-on-year, the PPI was up 4.7%. The core PPI, which excludes volatile energy, food, and trade services prices, rose 0.4% from the previous month and 4.7% year-on-year.

Previously, the Consumer Price Index (CPI) for July rose by 0.1% from the previous month, matching expectations. CNBC reported that as the PPI index was also in line with forecasts and its rise slowed, expectations for a September base rate hike have declined.

Bill Merz, Head of Capital Markets Research at US Bank Asset Management, said, “The current inflation environment is still not enough to shake the earnings-driven market,” adding, “It remains uncertain how such figures will be interpreted and what actions will be taken under Federal Reserve Chair Kevin Warsh, so the market continues to struggle with uncertainty.”

Merz also commented, “The gradual easing in both CPI and PPI is a positive signal.”

Among artificial intelligence (AI) related stocks, Cisco Systems and Cerebras suffered steep drops of 8.40% and 11.85%, respectively, after disappointing quarterly earnings reports. In contrast, Nvidia rose 0.54%, Meta 2.78%, Alphabet 0.82%, Micron 4.23%, Intel 3.58%, and SK hynix ADR 7.29%, displaying notable gains.

The situation at the Strait of Hormuz remained largely unchanged, with negotiations continuing through intermediary countries. U.S. President Donald Trump stated the previous day, “The U.S. military has complete control of the Strait of Hormuz,” criticizing Iran. In response, a spokesman for the Khatam al-Anbiya Central Command issued a statement claiming, "The United States’ unfounded claims regarding maritime passage through the Strait of Hormuz only demonstrate U.S. desperation and impotence; nothing but bold-faced lies."

International oil prices fell, affected by the International Energy Agency’s (IEA) outlook for a reduction in oil demand. The IEA projected that, due to rising fuel prices caused by transport disruptions at the Strait of Hormuz, global oil demand for this year will decrease by as much as 1.6 million barrels per day. This figure is 510,000 barrels greater than previously anticipated.

At the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for September delivery closed at $83.27 per barrel, up 0.1% from the previous session. At the ICE Futures Exchange, Brent crude for October delivery rose 0.1% to $88.98 per barrel.

According to Investing.com, the yield on the 10-year U.S. Treasury note stood at 4.640%, down 5.2 basis points (1bp = 0.01 percentage points) from the previous session, while the 2-year Treasury yield was at 4.151%, down 4.8 basis points from the previous session.

This content was produced with the assistance of AI translation services.