Last night, the Producer Price Index (PPI) was announced. The result showed a 3% increase, exceeding the expected 2.6%, causing tension in the market. (However, the CME Fed Funds Futures market still anticipates a rate cut.
Additionally, initial jobless claims rose, which halted the downward trend in U.S. Treasury yields, leading to a rise in yields by the end of the day.
Among the M7 companies, only Apple and Microsoft closed slightly higher, while the rest ended the day with declines.
The Dollar Index continued its rebound from a consolidation phase and closed at the 107 level.
Crude oil prices slightly declined after the International Energy Agency (IEA) projected that even if OPEC+ delays production increases, the global oil market could face a daily oversupply of 1.4 million barrels next year. Despite this, oil prices remain at the $70 level.
Having navigated this week's inflation data releases, the market is now looking ahead to next week's FOMC meeting. Currently, there is a high probability that the Federal Reserve will proceed with a rate cut, according to market expectations.
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