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Stocks rallied on Tuesday after the producer price index (PPI) showed a slowing in wholesale prices, Amazon reportedly laid off 10,000 employees, Yellen issued a warning over crypto investing, and more financial news.
Ahead of the opening bell on Tuesday, a lower-than-expected PPI report showing slowing inflation on wholesale prices saw stocks moving upward. The Dow Jones industrial average rose 1%, while the S&P 500 moved up 1.7%, and the Nasdaq 100 advanced 2.7% in morning action, Investor’s Business Daily reported.
The 10-year Treasury yield dipped to 3.76% Tuesday morning following the cooler inflation data. US oil prices declined nearly 1%.
Walmart surged 7.7% in premarket trading on Tuesday after better-than-expected fiscal third-quarter results, Yahoo reported.
Wholesale prices rose by 8% in October year-over-year, down from 8.4% in September, according to the latest Producer Price Index (PPI) report from the Bureau of Labor Statistics.
Economists expected a PPI of 8.3%. On a monthly basis, producer prices rose 0.2%, below expectations, CNN reported.
Beginning this week, Amazon has plans to lay off roughly 10,000 employees in corporate and technology roles, according to a report from the New York Times.
Amazon shares were down 2% on Monday.
If true, the cuts would be the largest in the company’s history and would primarily impact Amazon’s retail division, devices organization, and human resources, according to the report, CNBC reported. The 10,000 layoffs would represent less than 1 percent of Amazon’s global workforce and 3 percent of its corporate employees.
Treasury Secretary Janet Yellen spoke out on the collapse of cryptocurrency exchange FTX, warning Americans to be cautious about investing in “extremely risky” financial products that are traded in a space that lacks “appropriate supervision and regulation.”
“I think this is a space where investors and consumers should really be very careful,” Yellen told CBS News. “We have very strong investor and consumer protection laws for most of our financial markets, but in some ways, the crypto space has inadequate regulation.”
Yellen added that cryptocurrencies are “extremely risky assets, and even dangerous in some ways.”
Here is a quick look at top financial news stories making headlines on Tuesday…
Warren Buffett’s Berkshire Hathaway has purchased a $4.1 billion stake in Taiwan Semiconductor Manufacturing Company, TSMC, ticker (TSM), one of the world’s largest chipmakers, CNN reported. On Tuesday, shares of T
