Beat the street: Stronger-than-expected PPI; Powell; tariffs; Home Depot
Hotter-than-expected producer price data sets the scene for Federal Reserve Chair Jerome Powell's speech later in the day and incoming CPI.
The Biden administration significantly hikes tariffs on Chinese cars, chips. Home Depot’s comparable sales drop was steeper-than-expected on easing demand.
(AI Video Summary)
Biden administration raises Chinese import tariffs
In today's edition of "Beat the street", hosted by Angeline Ong, there's keen anticipation around inflation data with tech traders on edge. The Biden administration has raised tariffs on Chinese imports, particularly cars and ships, impacting various sectors, including retail with companies like Home Depot experiencing a downturn in large project spending.
PPI market reaction
A significant market reaction was noted after the Producer Price Index (PPI) data release, showing a higher than expected month-on-month inflation excluding food and energy, which led to declines in the Dow Jones, S&P 500, and NASDAQ indices, alongside a spike in the US dollar index. Additionally, NASDAQ's future movements were discussed, projecting an upward trend unless inflation surprises to the upside.
Company news
In mining, Anglo American plans to reshape its portfolio, facing a takeover attempt by BHP. Also, chip stocks are under watch due to new US tariffs on Chinese imports, affecting companies like NVIDIA and Intel. The overall market sentiment remains cautious with future PPI readings and inflation data awaited for further direction.
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