Global stocks advance despite sharp rise in US wholesale inflation
Wall Street and Asian markets post gains as investors weigh persistent inflation, interest rate concerns and recovering technology shares
US producer prices jumped 1.3% in September, bringing annual wholesale inflation to 6.3%, well above market forecasts.
The monthly increase was the largest since March 2022, while the annual rate reached its highest level since December 2022.
The figures, alongside elevated consumer inflation, fueled speculation that the Federal Reserve could tighten monetary policy further.
US retail sales also exceeded expectations, increasing 0.8% in September and signaling continued consumer spending strength.
Meanwhile, concerns about the profitability of artificial intelligence investments continued to weigh on major chipmakers.
Nvidia shares fell 2%, AMD declined 1.5%, and Intel dropped 3%.
Healthcare and retail stocks helped offset those losses. Eli Lilly gained 3.5%, UnitedHealth rose 2.8%, and Walmart advanced 1.5%.
The Dow Jones Industrial Average climbed 1.08% Thursday, while the S&P 500 gained 0.33% and the Nasdaq Composite edged up 0.08%.
Investors also moved into government bonds amid concerns about the technology sector and broader economic growth.
The benchmark 10-year US Treasury yield declined 11 basis points to 5.08% Thursday.
The dollar weakened slightly, while gold traded around $4,171 per ounce Friday.
Oil prices also eased after the International Energy Agency agreed to release more than 20 million barrels of diesel into global markets, adding to previous emergency reserve releases.
Brent crude futures for December delivery slipped 0.5% to $105.40 per barrel.
European markets largely advanced, supported by healthcare stocks and positive corporate earnings.
Germany’s DAX rose 0.33%, Britain’s FTSE 100 gained 1.08%, and France’s CAC 40 increased 0.78%. Italy’s FTSE MIB, however, declined 0.72%.
In Asia, technology shares led a broader rally Friday.
South Korea’s Samsung Electronics jumped 4.6%, while SK Hynix gained 3.8%.
South Korea’s Kospi surged 3.9%, Japan’s Nikkei 225 climbed 2%, Hong Kong’s Hang Seng advanced 1.1%, and China’s Shanghai Composite rose 1%.
The gains came despite persistent uncertainty over US monetary policy, geopolitical tensions and the sustainability of technology-sector valuations.
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