7 sources·Business

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

December sees a 0.2% increase in U.S. producer prices driven by energy costs, amid mixed stock market reactions and inflation forecasts.

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While the overall market showed some resilience with a modest rise in the S&P 500 and Dow, the disappointing performance of Eli Lilly and a mixed bag of index results underscore the ongoing challenges that persist beneath the surface of seemingly positive economic indicators.
How major US stock indexes fared Tuesday, 1/14/2025
Associated Press·3M
Reliable
This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
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Center
This outlet is balanced or reflects centrist views.
The upcoming inflation report is poised to significantly sway stock market direction, underscoring the fragile balance investors must navigate amidst fluctuating economic indicators.
JPMorgan’s view on Wednesday's inflation reading and how the stock market will react
CNBC·3M
Reliable
This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
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Center
This outlet is balanced or reflects centrist views.
The recent market activity underscores the persistent uncertainty surrounding inflation, interest rates, and the Federal Reserve's policies, with a disappointing earnings season looming that could threaten further equity gains.
Dow Rises 220 Points, While S&P, Nasdaq End Flat
Newsmax·3M
Mixed Reliable
This source has a mixed track record—sometimes accurate but also prone to bias, sensationalism, or incomplete reporting.
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Right
This outlet favors right-wing views.
While producer prices rose moderately in December, it is unlikely this will alter the prevailing sentiment that the Federal Reserve is poised to maintain interest rates amid a robust labor market.
US producer prices rise moderately in December
Fox Business·3M
Mostly Reliable
This source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.
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Leans Right
This outlet slightly leans right.

Updated: Jan 14th, 2025, 7:40 PM ET

Summary

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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.

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