Stocks Rally in Countdown to CPI as US Yields Sink: Markets Wrap
- US producer prices increased by less than forecast in July
- Starbucks ousts CEO and taps Chipotle’s Brian Niccol as boss
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Stocks rallied and bond yields fell after the latest US inflation reading reinforced speculation the Federal Reserve will be able to deploy its widely anticipated interest-rate cut in September.
Just 24 hours ahead of the consumer inflation report, data showed the producer price index rose less than forecast. Categories in the PPI report used to calculate the Fed’s preferred inflation measure — the personal consumption expenditures price index — were generally tame. The S&P 500 climbed 1.7%, led by gains in the world’s largest technology companies. Treasuries rose across the curve, with the move driven by shorter maturities. The dollar fell.