US stocks rebound on softer PPI and cheaper oil, Dow rises for first time in four sessions

2026-08-13

Dow rises for first time in four sessions

The Dow Jones Industrial Average opened higher on the US stock market on the 13th, rising for the first time in four trading days. As of 9:35 a.m., it was up 160.40 points from the previous day at 53,930.67. The July US producer price index (PPI) came in below market expectations, easing bets on a US rate hike. Lower oil prices also supported investor sentiment.

Inflation gauges cool

The PPI was unchanged from the previous month, missing the 0.2% increase forecast in a Dow Jones Newswires poll. Compared with a year earlier, it rose 4.7%, a sharp slowdown from June's 5.5% gain. The July US consumer price index (CPI), released on the 12th, also pointed to a modest easing in inflation.

Lower rates support stocks

With the view that the Federal Reserve will not rush to raise rates, the FedWatch tool, which uses moves in short-term interest rate futures to forecast monetary policy, showed the probability of holding the policy rate steady in September rising to above 60% from around 60% the previous day. The front-month September WTI (West Texas Intermediate) contract in US crude futures was trading more than 2% below the previous day's settlement. There has been no notable progress in talks over opening the Strait of Hormuz, but views are spreading that sustained high oil prices will curb demand. Softer PPI data and cheaper oil pushed down US long-term yields, reducing the relative expensiveness of equities.

Stocks move unevenly

Within the Dow average, Microsoft, Walt Disney and Goldman Sachs were higher. Travelers and Salesforce also gained. On the other hand, Cisco Systems fell sharply. In earnings for the May-July 2026 period announced on the 12th, sales and other measures beat market expectations, but a decline in gross profit margin weighed on the stock. 3M and Chevron also fell. The Nasdaq Composite Index, which is heavily weighted toward technology stocks, opened higher for a second straight session, with Advanced Micro Devices (AMD), Intel and Micron Technology rising. Cerebras Systems, the artificial intelligence (AI) chip maker that reported quarterly earnings after the close on the 12th, fell sharply. The S&P 500 index, which is a benchmark for many institutional investors, also opened higher for a second straight session and at one point traded above its record high of 7757 set on the 7th.

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