Stocks jumped for a second day Thursday as investors cheered another day Better than expected inflation report.
The Dow Jones Industrial Average rose 321 points, or nearly 1%. The S&P 500 is up 1.1%, and the Nasdaq Composite is up 1.3%.
Investor sentiment got a boost when the Producer Price Index for July showed a surprising drop from June. The producer price index fell 0.5%, compared to an estimate of a 0.2% gain, according to a Dow Jones survey. The PPI reading for food and energy rose less than expected.
This reading comes after an encouraging reading Consumer price index for July on Wednesday. The CPI came in at 8.5%.slightly cooler than the 8.7% rate that analysts polled by Dow Jones had expected, at a slower pace from the previous month.
Wednesday’s regular trading session saw all major indices rise, with the Dow Jones Industrial Average jumping 535.10 points, or 1.63%. The S&P 500 rose 2.13% and hit it Highest level since early MayThe Nasdaq Composite Index rose 2.89%, its highest close since late April.
“The trend is our friend here. Markets will appreciate this as one step forward in the right direction for inflation, yesterday and today,” Mona Mahajan, chief investment analyst at Edward Jones, said on Squawk Box.
“For the markets, we can’t fight the momentum we’re seeing in the near term,” Mahajan said, but she added that further rate hikes by the Federal Reserve and a weaker labor market could cap gains.
Earnings reports also boosted major averages. Disney shares jumped more than 7% after the media giant Published subscriber numbers stronger than expected for the fourth quarter, along with earnings and revenue that beat expectations. Disney also said it would raise prices for Disney+.
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