Stock futures traded lower after the release of the latest inflation data, which has sparked concerns about the future trajectory of interest rates.
S&P futures saw a 0.2% decline, while Nasdaq-100 futures remained unchanged. Meanwhile, Dow Jones Industrial Average futures slipped by 140 points, representing a 0.4% decrease.
The January producer price index (PPI), a key indicator of wholesale inflation, posted a higher-than-expected 0.3% increase. Economists surveyed by Dow Jones had anticipated a more modest 0.1% rise. Excluding volatile food and energy prices, the core PPI surged by 0.5%, surpassing the projected 0.1% gain.
Driven by the unexpectedly sharp increase in PPI, the yield on the 10-year Treasury breached the 4.3% mark. Simultaneously, the 2-year Treasury yield reached over 4.7%, marking its highest level since December.
Source (CNBC)
