
US Producer Price Index Rises Most in Three Months on Energy Costs
The US producer price index for August rose 0.4% from the prior month and 5.4% from a year earlier. Initial jobless claims fell by 1,000 to 206,000 for the week ending September 5.
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The US producer price index for August rose 0.4% from the prior month and 5.4% from a year earlier. Initial jobless claims fell by 1,000 to 206,000 for the week ending September 5.

August PPI is higher than July but in-line with Wall Street estimates, says Kevin Hincks. Stocks still felt pressure following the release of the print.

The 10Y Treasury yield is likely to exceed the 5% level as real rates and BE inflation both rise above the 2.5% level. The S&P500 has been largely ignoring the rising rates but a deep correction gets more likely as 10Y yield exceeds the 5% level.

US stocks opened lower on Thursday as US oil prices climbed above $100 a barrel and stronger-than-expected annual producer inflation increased concerns about interest rates. The Dow Jones Industrial Average fell 153 points while the S&P 500 declined 0.56%.

U.S. indices come under pressure as rising rates test key technical levels ahead of CPI.

The S&P 500 (SPX) faces heightened uncertainty ahead of a pivotal FOMC meeting amid Treasury buybacks and global bond market vulnerabilities. Persistent inflation risks, driven by elevated oil prices and geopolitical tensions, put the Fed in a difficult position between rate cuts and hikes.

Rising oil prices and geopolitical risks, including the Iran conflict, are elevating energy costs and market uncertainty. Despite higher bond yields, strong demand for Treasuries and robust earnings growth have compressed the S&P 500's forward multiple to 19.5.

A disconnect between deteriorating macroeconomic conditions and upbeat valuations risks triggering a market drop, the European Union's financial watchdog said on Thursday, citing conflict in the Middle East and rising energy prices.

The producer-price index rose 0.4% in August, versus a 0.1% increase in July. The reading was in line with economists' forecasts.

The gold market is selling off after the latest data showed U.S. producers saw rising price pressures on balance last month.The headline Producer Price Index (PPI) posted a 0.4% increase in August, following July's upwardly revised 0.1% reading, the U.S. Labor Department announced on Thursday. The latest headline data was in line with expectations, as economists looked for a 0.4% increase.

It's the first of two major inflation reports this week that could influence the Fed's decision at its Sept. 16 meeting.

U.S. wholesale prices rose in August, according to a report Thursday that could play a key role in the Federal Reserve's upcoming interest rate decision.

Wholesale costs in the U.S. jumped again in August, flogged by higher gasoline prices, in the first of two inflation reports that will dictate if the Federal Reserve raises interest rates next week.

Celsius Holdings is rated a hold at $27.64, aligning with my fair value estimate of ~$28 per share. The PepsiCo partnership and Alani Nu acquisition have strengthened CELH, but core Celsius brand growth remains unproven post-distribution changes. Current valuation is based on a 2027 EPS estimate of $1.55 and an 18x multiple, reflecting 7.3% revenue growth and 17.5% operating margin assumptions.

US equity futures waver ahead of PPI data, Oracle earnings and a rate decision from the European Central Bank. Brent crude reaches $102 a barrel as Iran is said to be ready to intensify its counterattacks if the US continues its strikes.