Stocks Slip After April PPI Jumps 1.4% as 10-Year Yield Climbs to 4.45%

5 articles · Updated · CNBC · May 13

A hotter-than-expected producer inflation report pressured stocks Wednesday, with April PPI rising 1.4% from March and 6% from a year earlier—the biggest annual increase since 2022.
That reading deepened worries the Federal Reserve will have less room to cut rates later this year, pushing Treasury yields higher and lifting the 10-year yield to around 4.45%.
The market reaction was uneven: the Nasdaq still edged higher as semiconductor and AI shares rebounded from Tuesday's sell-off, though investors were cautioned against chasing parabolic moves.
Nvidia gained 2% on optimism tied to CEO Jensen Huang's China trip with President Donald Trump, while Boeing drew attention on reports China could order as many as 500 aircraft.
The inflation surprise followed Tuesday's CPI report showing consumer prices up 3.8% year over year, reinforcing a broader debate over how quickly price pressures are cooling.

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