Stocks Edge Up As Producer Inflation Supports Rate Cut Bets, Small Caps, Miners Rally: What’s Driving Markets Thursday? – SPDR Dow Jones Industrial Average ETF (ARCA:DIA)

At midday on Thursday, Wall Street was showing slight gains, with small caps leading the charge. The Russell 2000 index surged 1.2%, outperforming large-cap indices in a notable rebound.

The session kicked off with the release of the August Producer Price Index (PPI), which revealed mixed inflation data, following a slightly hotter-than-expected underlying consumer inflation picture a day earlier.

However, the PPI report had little impact on market expectations surrounding future Federal Reserve rate cuts, with traders fully pricing in a reduction in the fed funds rate next week.

See Also: JPMorgan Warns Anticipated Rate Cuts May Not Significantly Boost Stock Markets

Meanwhile, jobless claims remained largely unchanged from the previous week and in line with forecasts, suggesting stability in the labor market.

Also in line with market expectations, the European Central Bank (ECB) also announced a 25-basis-point cut to the deposit facility rate, lowering it to 3.5%.

The macroeconomic backdrop provided a tailwind for commodities. Gold hit a new all-time high, up 1.7% surpassing $2,550 per ounce, boosting mining stocks.

The VanEck Gold Miners ETF GDX surged 4.3% by midday, marking its strongest session since early March 2024.

Silver prices also saw a strong uptick, rallying 3.8%, which pushed the Global X Silver Miners ETF SIL up by more than 5%, positioning it for its best session since December 2023.

Across the broader commodities complex, oil prices climbed 2.4%, while natural gas spiked 4.5%.

In the cryptocurrency market, Bitcoin BTC/USD was up 1.1%, rebounding after Wednesday’s slight dip.

Thursday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY was 0.4% higher to $557.23.
• The SPDR Dow Jones Industrial Average DIA rose 0.3% to $410.61.
• The tech-heavy Invesco QQQ Trust Series QQQ rose 0.6% to $471.53.
• The iShares Russell 2000 ETF IWM rallied 1.3% to $211.46.
• The Communication Services Select Sector SPDR Fund XLC outperformed, up 1.3%. The Real Estate Select Sector SPDR Fund XLRE was the laggard, down 0.5%.

Thursday’s Stock Movers

• Newmont Corp. NEM soared 4.5% after BNP Paribas raised the price target from $58 to $65.
• Moderna Inc. MRNA plunged over 14% after announcing plans to cut annual R&D spending by approximately $1.1 billion starting in 2027, citing “recent commercial challenges.” The company now projects its 2025 revenue to range between $2.5 billion and $3.5 billion, below analyst expectations of $3.9 billion.
• Medical Properties Trust, Inc MPW rallied by over 17%, fter the medical REIT disclosed a global settlement with tenant Steward Health Care System, its secured lenders, and the Unsecured Creditors Committee.
• Micron Technology Inc. MU fell by about 3.5% after Raymond James lowered its price target on the stock from $160 to $125.

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