The Nasdaq 100 (NDX) opened the Thursday trading session in the red amid a better-than-expected producer price index (PPI) report. The PPI tracks the prices received by producers for their products and is a gauge of inflation from the sellers’ perspective.
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In May, PPI rose by 0.1% month-over-month (MoM) compared to the estimate for 0.2%. That’s still higher than April’s PPI, which was revised to -0.2% from -0.5%. Furthermore, PPI increased by 2.6% on a yearly basis in May, in line with the estimate.
Core PPI, which excludes volatile food and energy prices, rose by 0.1% MoM and 3.0% year-over-year. Economists were expecting 0.3% and 3.1%, respectively.
Is the Good News Priced in?
The PPI report hasn’t resulted in gains for the Nasdaq 100 while the S&P 500 (SPX) is in the red as well. Both indexes have staged incredible recoveries from their April lows, with the NDX up by 27% since then. As a result, the market is likely taking a breather and could potentially consolidate and trade in a range or progress lower.
The Nasdaq 100 is down by 0.07% at the time of writing.
