Stock Market News August 13, 2024

Stocks rose on Tuesday, approaching record levels hit last month following the release of the first two major U.S. inflation reports this week.

the Dow Jones Industrial Average The index ended the day up 408 points, or 1.04%, at 39,765.64 points. Nasdaq Composite It jumped 2.43% to close at 17,187.61, while Standard & Poor's 500 Dubai's index rose 1.68% to 5,434.43. The broad-market index is now about 5% away from a record high hit in July.

The producer price index, a measure of wholesale prices, rose 0.1% last month. Economists had expected the reading to show a 0.2% monthly increase in July, in line with the previous month’s reading, according to the Dow Jones Consensus Estimate.

The producer price index gave investors some encouragement ahead of Wednesday morning’s closely watched consumer price index, which is expected to show a 0.2% month-on-month gain, up from a 0.1% decline in the previous month. The data could offer some direction to a market that has been unsettled after last week’s wild moves.

“Today’s PPI data provides further evidence that the tide has turned on inflation, particularly in the services sector,” said David Russell, head of global market strategy at TradeStation.[I]“Investors who recently dumped stocks in hopes of a price decline may be disappointed. But there is still hope that things will improve.”

Tuesday’s rally added to the strong gains seen late last week, as the market further recovered from the sharp sell-off it saw on Aug. 5. Since that close, the S&P 500 has risen 4.2%.

Volatility has also fallen sharply since then. The Chicago Mercantile Exchange Volatility Index (VIX) remained below 20 on Tuesday after rising above 65 last week.

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