HomeFinancial MarketsStarbucks Stock Surges as PPI Data Comes In

Starbucks Stock Surges as PPI Data Comes In

Stocks on the New York Stock Exchange rose on Wednesday after the release of the latest producer price index (PPI) report. The benchmark S&P 500 rose more than 1%, putting it on track to its largest four-day gain of the year. The tech-heavy Nasdaq 100 surged 1.5% upwards while the Dow Jones Industrial Average gained 0.4%.

PPI came in at 0.1% higher than the previous month, lower than the 0.2% rise forecast by a panel of economists surveyed by Bloomberg. On an annual basis, PPI rose 2.2%. Excluding volatile food and category, PPI remained unchanged from the previous month. According to Paul Ashworth at Capital Economics, the latest PPI report is a positive sign. “It is nevertheless consistent with the Fed’s preferred core PCE prices measure increasing at a below 2% annualized pace,” Ashworth explained, suggesting that the Federal Reserve could be swayed to lower its interest rates.

Starbucks was the major winning stock of the session, skyrocketing by 20% after announcing new CEO and Chairman Brian Niccol, who arrived from Chipotle Mexican Grill Inc. Niccol replaced Laxman Narasimhan, who acted in the role for a little over a year.

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