Thursday’s Market Movers: Tech Stocks Drive Market Upsurge as Inflation and Fed Tightening Fears Dissipate

Lower producer inflation eases concerns about Fed tightening

Lower-than-expected producer inflation numbers are comforting and imply that price pressures have eased their hold on the economy, as U.S. equities are poised for their fourth straight session of gains.

This result could lessen the need for the Federal Reserve to raise interest rates beyond July.

Leading the way are Alphabet Inc. and Amazon Inc.

All seven of the S&P 500’s heavyweights are up, led by tech companies, which dominate the market. The market leader is Alphabet Inc. (+4.5%), followed by Amazon Inc. (+2.6%), which hit a 43-week high after reporting record sales during its Prime Day event.

Significant Indices Reach New Levels

The Nasdaq 100 Index soars to levels last seen in mid-January 2022 with a 1.3% gain, while the S&P 500 Index reaches 4,500, achieving its highest level since the final week of April 2022.

The Dow Jones Industrial Average’s blue-chip stocks increase by 0.2%, while the Russell 2000 Index’s small caps increase by 0.9%.

Perspectives from Analysts on the Market Rally

Divergent opinions are offered by analysts on the market rally.

The decrease in Treasury bond rates, according to fund manager Louis Navellier, is an indication that the Fed may decide to hold off on tightening at its forthcoming July meeting.

However, Lisa Shalett of Morgan Stanley cautions of concerns, citing bond volatility, rising interest rates, and a strong currency as examples.

Major U.S. Equity ETF Performance

Major U.S. equities ETFs do well during lunchtime trading.

The SPDR S&P 500 ETF Trust (SPY), SPDR Dow Jones Industrial Average ETF (DIA), and the Invesco QQQ Trust (QQQ) all experience gains of 0.6%, 0.2%, and 1.3%, respectively.

Table:

Index

Last

% Change

Nasdaq 100

15,507.07

+1.27%

S&P 500

4,501.28

+0.53%

Dow Industrials

34,413.17

+0.19%

Russell 2000

1,949.52

+0.85%

Focus on Stocks

Following the disclosure of an issue during the deployment of its ViaSat-3 Americas satellite, Viasat, Inc. (-28.9%) sees a major decline.

Due to weaker-than-expected quarterly earnings, The Progressive Corp. (-12.2%) has had its worst daily loss since October 2008.

Following a court ruling that Ripple (XRP) is not a security, crypto-related businesses including Marathon Digital Holdings, Inc. (+13.3%), RIOT Platforms, Inc. (+14.6%), and Coinbase Global, Inc. (+12.4%) soar.

Following a downgrade by JP Morgan Securities, Carvana Co. (CVNA) sees a decline of more than 7%.

Table:

Company

Stock Price Change

Reason

Viasat, Inc.

-28.9%

Reported an anomaly during the deployment of its ViaSat-3 Americas satellite.

The Progressive Corp.

-12.2%

Reported lower-than-expected quarterly results.

Marathon Digital Holdings, Inc.

+13.3%

Surged following a court decision that Ripple (XRP) is not a security.

RIOT Platforms, Inc.

+14.6%

Surged following a court decision that Ripple (XRP) is not a security.

Coinbase Global, Inc.

+12.4%

Surged following a court decision that Ripple (XRP) is not a security.

Carvana Co.

-7.0%

Fell after a downgrade by JP Morgan Securities.

Bonds, commodities, and other international equity markets

WTI-grade crude is now priced at $75.90 a barrel, up 0.3%.

The 10-year Treasury yield is now at 3.77% as Treasury rates are falling.

While the European market indices end the day in the green, the U.S. dollar declines.

Silver gains 2.6% to $24.70 while gold rises 0.2% to $1,959 per ounce.

Asset

Price

Change

Crude oil

$75.90

+0.3%

WTI-grade crude

$75.90

+0.3%

Treasury yields

3.77%

-0.03%

10-year yield

3.77%

-0.03%

U.S. dollar

Weakens

-0.10%

European equity indexes

Close in the green

+0.3%

Gold

$1,959

+0.2%

Silver

$24.70

+2.6%

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