PPI Rises But Shows Progress – US Market Wrap

– Stocks rose on the back of the world’s greatest technology companies, with traders bracing for a flood of corporate earnings that would put this year’s $4 trillion gain to the test.

– Earnings season begins Friday, with JPMorgan, Wells Fargo, and Citigroup reporting. A healthy economy is likely to drive profit growth for S&P 500 businesses, with big tech’s excellent margins playing a crucial role. An inflation report that fell short of expectations a day after a strong pricing reading dampened predictions on Federal Reserve rate reduction aided mood.

– The S&P 500 remained at 5,200, while the Nasdaq 100 rose 1.6%. Alphabet approached the $2 trillion mark, Amazon reached a new high, and Apple soared on reports that it intends to remodel its Mac line. Financial stocks fell, with Morgan Stanley dropping on news that regulators are investigating its wealth arm. Globe Life plummeted following a short-seller call.

– Treasury 10-year yields rose two basis points to 4.57%. A sale of 30- year bonds garnered lackluster demand. The euro dropped after the European Central Bank signaled cooling inflation will soon allow it to cut rates.

– On Friday, Walt Street will be closely watching banks’ outlook and commentary around key profit drivers like net interest income and investment banking. Fewer interest rate cuts could bolster net interest income prospects for many large-cap banks and lead to upward guidance revisions.

– US producer prices increased in March from a year earlier by the most in 11 months, though certain categories that feed into the Fed’s preferred inflation gauge were more muted.

– Fed’s Collins said it may take more time than previously thought to gain the confidence to begin easing policy, possibly warranting fewer rate reductions this year.