[Anchor]
U.S. producer prices surged by the largest margin in 4 years and 6 months. Starting weak due to concerns over potential interest rate hikes, New York stock markets managed a rebound near the close of the session.
Here is correspondent Kim Hyunwoo from New York.
[Reporter]
The U.S. producer price index for September rose 1.3% from the previous month, marking the highest increase rate in 4 and a half years since March 2022.
This significantly exceeded the market expectation of 0.6%.
Compared to the same month a year ago, prices jumped 6.3%, showing the largest increase since December 2022.
By sector, goods prices surged 2.6%, the highest since statistics began in 2009, while gasoline prices jumped by more than 20%, increasing transportation cost burdens for businesses.
Core producer prices, excluding food and energy, rose 0.7% from the previous month.
Often referred to as wholesale prices, producer prices are considered a leading indicator of consumer prices by the market, given that they are reflected in consumer prices with a time lag.
As consumer prices exceeded market expectations followed by a sharp rise in producer prices, forecasts suggest that the Federal Reserve's burden to raise interest rates will grow heavier.
[Matt Stucky / Chief Portfolio Manager, Northwestern Mutual: Financial conditions are likely to deteriorate further. This could put pressure on risky assets like stocks.]
Amid these concerns, the overnight New York stock markets saw all three major indexes close on an upward trend as the Nasdaq turned upward near the end of the session.
However, amid concerns that AI investments might contract, semiconductor-related stocks including Nvidia and Intel continued to show weakness, and the Philadelphia Semiconductor Index, which tracks the stock prices of major U.S. semiconductor companies, fell for the seventh consecutive trading day.
(Photo: Lee Hee-hoon | Video Editing: Kim Jong-mi)
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