Stock Market Today: Indexes Tick Higher As Producer Inflation Comes In Cool

Brendan McDermid/Reuters

• Stocks rose after cooler-then-expected producer inflation data.
• Investors are now looking ahead to Wednesday's consumer price index data.
• Earnings season will also kick off tomorrow, with major banks scheduled to report.

US stocks gained after cooler-than-expected producer price index data soothed inflation concerns.

The numbers on Tuesday showed wholesale inflation rose 0.2% in December on a monthly basis, compared to an estimated 0.4% increase. The reading climbed 3.3% from a year ago, below the projected 3.5% gain.

"All eyes are now on Wednesday's CPI report, which may be the most important inflation reading in recent memory, as it will fuel the market's Fed-obsessed sentiment," said Chris Brigati, chief investment officer at SWBC. "A strong inflation number adds to this idea of no cuts in 2025, and potentially even a rate hike, while a weak inflation data point may help to calm the market's Fed fears."

Wednesday will also kick off fourth-quarter earnings season, with multiple major US banks including JPMorgan and Wells Fargo set to report.

Here's where US indexes stood at 10:35 a.m. on Tuesday:

• S&P 500: 5,851.75, up 0.3%
• Dow Jones Industrial Average: 42,462.74, up 0.4% (166 points)
• Nasdaq composite: 19,147.99, up 0.3%

Here's what else is happening:

• 3 trends to watch as earnings season kicks off.
• The S&P 500's postelection rally has been erased.
• The surging dollar will separate the winners and losers this earnings season.
• Energy stocks are off to a strong start in 2025 after back-to-back years of underperformance.
• Wall Street is starting to throw in the towel on another rate cut this year.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil slid 1.7% to $77.52 a barrel
• Brent crude, the international benchmark, fell 1.3% to $79.95 a barrel.
• Gold rose by 0.2% to $2,684.40 an ounce.
• The 10-year Treasury yield rose 1 basis point to 4.79%.
• Bitcoin rose 2.7% to $96,718.