The Nasdaq advanced by 2.40% on Wednesday, while the VIX Index dropped by 21.93% to close at 18.12 Points.
Open:- 16,944.74
Prev close:- 16,780.61
High:- 17,192.79
Low:- 16,943.95
52-wk high:- 18,671.07
52-wk low :- 12,543.86
The US markets rallied on Wall Street on Tuesday after one of the two inflation reports reinforced the speculation that the US Federal Reserve will begin cutting interest rates in September.
The Dow Jones surged over 400 points, while the S&P 500 added 1.7% to its tally. The Nasdaq Composite also surged nearly 2.5% to close above 17,000. The S&P 500 is now less than 5% away from the record high level that it hit in July.
Benchmark indices rose after the Producer Price Index, a measure of wholesale prices, increased 0.1% for July, while economists had expected it to increase by 0.2%. The PPI data has encouraged investors that the Consumer Price Index (CPI) data, scheduled to be released later this evening, will also be benign.
Economists are expecting the July CPI also to increase 0.2% month-on-month, higher than a 0.1% decline in June.
“Today’s PPI data gives further evidence that the tide has turned on inflation, especially in services,” said David Russell, global head of market strategy at TradeStation. "Investors who dumped stocks recently expecting lower prices might be frustrated. The other shoe isn’t dropping.”
Since the sharp sell-off seen on August 5, the S&P 500 has already recovered 4.2%.
Volatility has also eased sharply since then. The Cboe Volatility Index (VIX) hovered below 20 on Tuesday after surging above 65 last week.
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