12:32 PM EDT, 05/14/2024 (MT Newswires) -- US benchmark stock indexes traded mixed after midday on Tuesday as investors weighed the producer price inflation data.
The S&P 500 rose less than 0.1% to 5,221.8, and the Nasdaq Composite climbed 0.3% to 16,428.1. The Dow Jones Industrial Average was little changed at 39,434.8. Real estate was the top gainer, while energy and consumer staples led the decliners.
In economic news Tuesday, the US producer price index rose 0.5% in April following a downwardly revised 0.1% decline in March, beating the 0.3% gain expected in a survey compiled by Bloomberg. After excluding food and energy prices, core PPI jumped 0.5%, above the 0.2% increase anticipated and compared with a 0.1% drop reported in the previous month. PPI was up 2.2% year-over-year in April, while core PPI rose by 2.4% year-over-year, both coming in line and above their respective 1.8% and 2.1% March rates.
Restrictive monetary policy may take longer to impact inflation than was expected, requiring the Federal Open Market Committee to keep rates higher for longer, Federal Reserve Chair Jerome Powell said Tuesday. The US economy is performing "very well" with a strong labor market and rising employment and wages, though with some signs of "gradual" cooling, Powell said Tuesday at the annual general meeting of the Foreign Bankers' Association.
The US 10-year Treasury yield fell less than 1 basis point to 4.48%, and the two-year rate declined 1.9 basis points to 4.84%.
In company news, Alibaba Group ( BABA ) reported weaker-than-expected fiscal Q4 earnings despite revenue gains in the company's e-commerce, cloud and logistics segments. Shares slumped 7.3% intraday.
West Texas Intermediate crude oil dropped 1.5% to $77.93 a barrel.