US stocks saw an uptick in late morning trading on Tuesday, buoyed by cooler-than-expected inflation data and anticipation of an upcoming consumer price update. The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) surged by approximately 1.7% and 1% respectively, marking the Nasdaq 100 (NQ=F) and S&P 500’s best three-day performance with four consecutive wins.
The Producer Price Index (PPI) rose by a modest 0.1% month-over-month in July, falling short of economist projections. On a year-over-year basis, the PPI climbed by 2.2%, aligning closely with the Federal Reserve’s 2% inflation target.
This PPI release precedes Wednesday’s more anticipated consumer price reading, with July’s retail sales data to follow on Thursday. These figures are crucial in gauging the health of the US consumer.
Following a period of heightened volatility, Wall Street experienced an unusually calm session on Monday, with the S&P 500 and Nasdaq continuing their gradual recovery from a three-day sell-off that had dented their year-to-date gains.
Home Depot (HD) was a notable earnings report on Tuesday, with the home improvement retailer cutting its same-store sales outlook, causing its shares to dip.
Elsewhere, Starbucks (SBUX) shares surged over 20% following the announcement of a CEO change, with Chipotle (CMG) chief Brian Niccol set to replace the incumbent. Conversely, Chipotle shares plummeted by more than 10%.
In other individual stock movements, Nvidia (NVDA) continued its upward trajectory, gaining over 5% after analysts at Bank of America labeled it a top “rebound” stock, building on a 4% gain from the previous day.
Shayne Heffernan
