The
producer price index rose 0.5% for September, coming out higher than the Dow Jones estimate for a 0.3% rise. While slightly higher than what economists' expected, the September figure still represented a slowing from the 0.7% producer prices increase in the prior month.
The 10-year Treasury yield remained lower even after the hotter-than-expected inflation data, losing more than 6 basis points to 4.58%. The 2-year yield, meanwhile, moved higher by less than 1 basis point to 4.993.
A day earlier, the benchmark U.S. yield fell, giving stocks a boost. The 30-stock
Dow had gained 0.4% on Tuesday, while the
S&P 500 added 0.52% and the tech-heavy
Nasdaq Composite jumped 0.58%.
"If rates continue to move lower, I think that will be the primary driver of a reasonable rebound in the equity market," Lauren Goodwin, director of portfolio strategy at New York Life Investments, said on CNBC's "
Closing Bell" on Tuesday.
"It's also about supply and demand dynamics," she added. "These past couple of days, we've had a little bit of relief from Fed narratives and also a little bit of risk mitigating type of buying. But Treasury supply is still overwhelming, we expect it to remain that way."
Stocks inched higher Wednesday as traders awaited the release of new U.S. consumer inflation numbers.
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