March PPI Misses Expectations, Fuels US Stock Market Gains

The PPI, an indicator showing changes in prices producers receive for goods and services, suggested the possibility of price stability, thereby improving investor sentiment. Expectations of easing international geopolitical tensions also positively impacted the stock market.

The US March Producer Price Index (PPI) rose 0.5% month-over-month, falling below the market forecast of 1.1%. Core PPI, excluding food and energy, rose by only 0.1%, undershooting the market forecast of 0.5% and easing inflation concerns.

News emerged that Iran and the US would attempt further indirect negotiations for a ceasefire. Bloomberg reported that Iran is considering suspending shipments through the Strait of Hormuz in the short term, and there were also reports that the US proposed a '20-year halt' to Iran. Signals of ongoing back-channel negotiations have appeared.

Amazon has challenged SpaceX's Starlink by acquiring satellite communications provider Globalstar for $11.5 billion. Amazon plans to leverage Globalstar's assets to add direct-to-device (D2D) services to its low-Earth orbit satellite network, 'Amazon Leo,' and deploy its next-generation satellite system starting in 2028. It will also continue to support the satellite-based emergency features previously provided by Globalstar to Apple.

Investment news related to AI hardware continues to positively impact the stock prices of related companies. Oracle and Bloom Energy have signed a contract to supply fuel cell systems of up to 2.8GW, and reports indicate Google is exploring cooperation with Marvell Technology on TPU design.