Dow gains 206 points on signs of resilient consumer, tolerable inflation.
AMC rose over 8% as it raised about $325.5 million through the sale of 40 million shares, a move that it said would address a cash crunch as the movie-theater industry rebounds.
The August reading of the producer price index came in hotter than expected. It rose 0.7%, more than the 0.4% increase anticipated by economists polled by Dow Jones. However, excluding food and energy, core PPI increased 0.2%, in line with the estimate.
Elsewhere, the European Central Bank hiked rates by an expected quarter percentage point Thursday but noted inflation is easing and could be near the end of its rate-hiking campaign.
That follows the August reading of the consumer price index. The core CPI, which excludes food and energy, gained 0.3% from the prior month and 4.3% from 12 months earlier. That compares against estimates of 0.2% and 4.3%, respectively, according to economists polled by Dow Jones.
Headline inflation increased 0.6% on a monthly basis and 3.7% from the prior year, while economists had called for 0.6% and 3.6%.
The August CPI reading isn’t expected to change the Federal Reserve’s course at its policy meeting beginning Sept. 19. Fed funds futures pricing data from Wednesday shows a 97% likelihood of rates remaining unchanged next week, according to the CME FedWatch Tool.
Even if the central bank holds steady on rates this time, markets will likely continue to be volatile in the coming months. Indeed, fed funds futures pricing data shows a roughly 40% probability that rates will rise at the November meeting.
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