Week of 09/09-09/13 CPI and PPI Reports, Stocks Best Week of 2024

Stocks finished higher this week as the Consumer Price Index and Producer Price Index results provided investors an optimistic view towards the next interest rate cut. The Federal Reserve is set to meet next week (Sept. 17-18) to announce the much anticipated change to economic policy. Major firm's analysts and economists are forecasting a 25-basis point rate cut, while the FED's target rate is sitting at 5.25% to 5.5%. Apple announced its new products this week with its iPhone lineup and re-introduction of their Apple watch series. Big Lots filed for bankruptcy Chapter 11 protection as it solves its financial situation. Retail continues to struggle due to inflation and increased online sales. Nvidia stock moved higher this week after its recent slump, bringing the stock back close to the $120 dollar per share mark. Big tech had a great week due to the market rally and anticipation of the next interest rate cut happening this month.

What does the Producer Price Index (PPI) measure and how is it helpful?

The Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output. It tracks the prices of goods and services at the producer level, providing insight into inflationary trends within the production process.

In the economy, the PPI serves as an important gauge of inflationary pressures for producers. An increase in PPI can indicate rising production costs, which may ultimately lead to higher consumer prices. Central banks and policymakers monitor the PPI to gauge inflationary trends and assess the health of the economy.