The producer price index (PPI) reading for February pulled the rug out from under Wall Street today, after doubling analysts' expectations. Treasury yields moved sharply higher as hopes of interest rate cuts went down the drain and the major indexes all spiraled into red territory. The Dow snapped its three-day win streak, the Nasdaq marked a steep loss of its own, and the S&P 500 distanced itself from record highs, all while the Cboe Volatility Index (VIX) recorded its best day since Feb. 20.

OIL PRICES SURGE ON GROWTH, SUPPLY FORECAST

Oil prices hit their highest level since November after the International Energy Agency (IEA) raised its oil demand growth forecast for 2024 and slashed its supply outlook for countries that do not belong to the Organization of the Petroleum Exporting Countries (OPEC). April-dated West Texas Intermediate (WTI) added $1.54 cents, or 1.9%, to finish at $81.26 per barrel.

Hotter-than-expected inflation data, rising Treasury yields, and a stronger greenback all contributed to lower gold prices. April-dated gold dropped $13.30, or 0.6%, to settle at $2,167.50 per ounce.

More By This Author: