Stock Market News Today: Markets largely to the topside after latest PPI data (SP500)

U.S. stocks on Thursday moved higher, as gains in heavyweight growth sectors helped offset losses in financials a day ahead of major earnings from big banks.

Sentiment had also received a boost earlier after a cooler-than-expected producer inflation print.

The tech-heavy Nasdaq Composite (COMP:IND) added 1.06% to 16,341.46 points in afternoon trade, while the benchmark S&P 500 (SP500) climbed 0.47% to 5,184.99 points. The blue-chip Dow (DJI) advanced 0.11% to 38,502.74 points.

Of the 11 S&P sectors, six were in the red, with Energy falling nearly 1%. Technology, Consumer Discretionary and Communication Services topped the gainers. Financials recouped some losses as investors geared up for quarterly reports from JPMorgan (JPM), Wells Fargo (WFC) and Citi (C) on Friday. With interest rates having stayed at record levels, the major lenders are expected to do well.

Earlier, Wall Street’s major averages opened in the green after the latest producer price index (PPI) report. Before the opening bell, the U.S. Bureau of Labor Statistics said headline PPI rose 0.2% M/M in March, lower than the expected rise of 0.3% and decelerating from February’s high reading of +0.6%. Meanwhile, core PPI also climbed 0.2% M/M, matching consensus and slowing from the prior month’s 0.3% increase.

The cooler-than-expected PPI data brought some relief to market participants a day after yet another hot consumer price index (CPI) report led to heavy selling on Wall Street and the dialing back of interest rate cut expectations.

Also on Thursday’s economic calendar, the number of Americans filing for initial jobless claims in the past week fell to 211K versus an estimate of 216K.

Treasury yields were mixed after a bond sell-off in the previous session sparked by the CPI data. Traders also received a $22B 30-year bond auction that tailed for the first time since November 2023. The longer-end 30-year (US30Y) and 10-year yields (US10Y) were both up 2 basis points each to 4.65% and 4.56%, respectively. The shorter-end more rate-sensitive 2-year yield (US2Y) was down marginally to 4.96%.

See live data on how Treasury yields are doing across the curve at the Seeking Alpha bond page.

Thursday also featured some global central bank action in the form of the European Central Bank’s (ECB) latest monetary policy decision. The ECB held its key interest rates at record highs, while sending signals that it may be getting ready for cuts.

“The European Central Bank held monetary policy steady at today’s announcement, though we view the accompanying statement as laying the groundwork for a probable ECB rate cut in June. The ECB cited an easing in underlying inflation and moderating wage growth,” Wells Fargo’s Nick Bennenbroek said.

“In addition, the ECB’s announcement and ECB President Lagarde suggested that so long as updated forecasts confirmed the improving inflation outlook, monetary policy easing would be appropriate at the June 6 meeting,” Bennenbroek added.

Turning to active stocks, Fastenal (FAST) was among the top percentage losers on both the S&P 500 (SP500) and the Nasdaq (COMP:IND). The industrial supplies maker delivered a quarterly top and bottom line miss as adverse weather impacted net sales.

Regeneron Pharmaceuticals (REGN) was also a top Nasdaq (COMP:IND) percentage loser after the U.S. Department of Justice filed a complaint against the drugmaker alleging it fraudulently inflated Medicare reimbursement rates for its blockbuster eye disease therapy Eylea.