Wall St jumps as softer producer prices data boosts rate optimism
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US producer prices rise less than expected in July
Starbucks up after naming Chipotle boss Brian Niccol as CEO
BuzzFeed jumps on smaller Q2 loss
Indexes up: Dow 0.54%, S&P 500 1.08%, Nasdaq 1.76%
Updated at 11:44 a.m. ET/1544 GMT
By Shubham Batra and Shashwat Chauhan
Aug 13 (Reuters) - U.S. stocks hit a near two-week highon Tuesday after a softer producer prices data reinforced bets of an interest rate cut by the Federal Reserve in September.
Megacap and growth stocks gained, with Nvidia NVDA.O set to lead the charge for a second session, rising over 5%. The Philadelphia SE Semiconductor Index .SOX rose 2.8%, touching a near two-week high.
U.S. producer prices increased less than expected in July as a rise in the cost of goods was tempered by cheaper services, indicating that inflation continued to moderate. In the 12 months through July, the PPI increased 2.2% after climbing 2.7% in June.
"It feels like 'back to normal' for markets as tech stocks lead the way higher again following the lower U.S. PPI data. The reading has given heart to beleaguered investors, who remain skittish after last week's volatility," said Chris Beauchamp, chief market analyst at IG.
The dollar =USD and the Treasury yields slid after the data,while traders now see a 55% chance ofa 50-basis-point rate cut by the U.S. central bankfrom less than 50% before the report, according to CME's FedWatch Tool.
Investors now await all-important consumer price (CPI) figures for July on Wednesday and retail sales data on Thursday to firm bets on an aggressive rate cut by the U.S. central bank.
Stocks wobbled on Monday with the S&P 500 .SPX nearly flat and the Nasdaq .IXIC eking out modest gains, following a turbulent week marked by mixed economic reports and a rate hike by Japan's central bank.
At 11:44 a.m. ET, theDow Jones Industrial Average .DJI rose 213.87 points, or 0.54%, to 39,570.88, the S&P 500 .SPX gained 57.83 points, or 1.08%, to 5,402.22 and the Nasdaq Composite .IXIC gained 294.92 points, or 1.76%, to 17,075.53.
Nine of the 11 major S&P sectors were trading higher, with information technology .SPLRCT and communication services .SPLRCL leading gains.
Energy shares .SPNY dipped on lower oil prices as OPEC's move to cut its forecast for demand growth in 2024 tempered fears of supply risks posed by widening conflict in the Middle East. O/R
Starbucks SBUX.O was the top performer on the S&P 500, rising 20.5% and was on track for its biggest one-day percentage gain ever, after the coffee giantappointed Chipotle Mexican Grill's CMG.N head Brian Niccol as chairman and CEO.
Chipotle dropped 9.6%.
Home Depot HD.N reversed losses and climbed nearly 1%. Thehome improvement chain forecast a decline in annual profit and a bigger drop in its annual comparable sales.
BuzzFeed BZFD.O jumped 19.6% after the digital media company narrowed its net loss in the second quarter to $6.6 million from $22.5 million a year earlier.
Investors will lookahead to comments from Atlanta Fed President Raphael Bostic, due at 1:15 p.m. ET, on the outlook for the U.S. economy.
Advancing issues outnumbered decliners by a 2.98-to-1 ratio on the NYSE and by a 2.19-to-1 ratio on Nasdaq.
The S&P 500 posted 14 new 52-week highs and three new lows, while the Nasdaq Composite recorded 45 new highs and 98 new lows.
Reporting by Shubham Batra, Medha Singh and Shashwat Chauhan in Bengaluru; Editing by Saumyadeb Chakrabarty and Maju Samuel
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