Stocks edge higher as producer inflation supports rate cut bets, small caps and miners rally: What's driving markets on Thursday? – SPDR Dow Jones Industrial Average ETF (ARCA:DIA)

Wall Street was posting slight gains at midday on Thursday, with small-cap stocks leading the way. The Russell 2000 index rose 1.2%, outperforming large-cap stocks in a notable rally.

The session began with the release of the producer price index (PPI) for August, which revealed mixed inflation data, following a slightly higher-than-expected underlying consumer inflation outlook a day earlier.

However, the PPI report had little impact on market expectations for future Fed rate cuts, with traders fully pricing in a cut in the federal funds rate next week.

See also: JPMorgan warns that expected rate cuts may not significantly boost stock markets

Meanwhile, jobless claims were virtually 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 in the deposit facility rate, bringing it down to 3.5%.

The macroeconomic context was favourable for commodities. Gold reached a new all-time high, up 1.7% and exceeding $2,550 an ounce, boosting mining stocks.

He VanEck Gold Mining ETF GDX rose 4.3% in midday trading, marking its strongest session since early March 2024.

Silver prices also experienced a strong rally, rising 3.8%, boosting the Global X Silver Mining ETF SIL rose more than 5%, positioning itself for its best session since December 2023.

In the broader commodities complex, oil prices rose 2.4%, while natural gas jumped 4.5%.

In the cryptocurrency market, Bitcoin BTC/USD rose 1.1%, recovering after Wednesday's slight drop.

Thursday's performance of major US indices and ETFs

According Benzinga Pro data:

• He SPDR S&P 500 ETF Trust SPY rose 0.4% to $557.23.
• He SPDR Dow Jones Industrial Average THERE rose 0.3% to $410.61.
• Heavy technology Invesco QQQ Trust Series QQQ rose 0.6% to $471.53.
• He iShares Russell 2000 ETF MMI rose 1.3% to $211.46.
• He Communication Services Sector SPDR Fund XLC exceeded expectations, rising 1.3%. Real estate Selected Sector SPDR Fund XLRE was the laggard, with a fall of 0.5%.

Stock market movements on Thursday

• Newmont Corporation. NO rose 4.5% after BNP Paribas raised its target price from $58 to $65.
• Moderna Inc. mRNA The company’s shares fell more than 14% after it announced plans to cut annual R&D spending by about $1.1 billion starting in 2027, citing “recent business challenges.” The company now projects its 2025 revenue to be between $2.5 billion and $3.5 billion, below analyst expectations of $3.9 billion.
• Medical Estate Trust, Inc. MPW rose more than 17%, after the medical REIT disclosed a global agreement with tenant Steward Health Care System, its secured lenders and the Unsecured Creditors Committee.
• Micron Technology Inc. IN fell by around 3.5% after Raymond James lowered its price target on the stock from $160 to $125.

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