U.S. Inflation Pressures Persist as Producer Prices Rise 0.2% in December

The U.S. producer price index rose 0.2% in December, causing mixed reactions in stock markets. Inflation pressures persist, with the S&P 500 up 0.1% and the Dow rising 0.5%. Year-on-year, the PPI increased by 3.3%, maintaining expectations of steady interest rates from the Federal Reserve. Investors await the upcoming consumer price index report for clearer future rate projections. Stocks fluctuated as concerns over tariffs and potential rate cuts strain market optimism. Eli Lilly’s disappointing forecast contributed to market hesitance. Market valuations remain above long-term averages, signaling possible volatility ahead.