Higher inflation pounced on the US stock market on Friday morning. The US Producer Price Index (PPI) arrived surprisingly strong, sending shockwaves through markets.
The Dow Jones Industrial Average futures sank 1% ahead of the market open, while the S&P 500 and NASDAQ futures only fared slightly better in the early going.
Core PPI for January, which excludes energy and food, rose 3.6% YoY, up from the previous reading of 3.3% and the consensus of 3%. Headline PPI rose 0.5% MoM compared with the 0.3% consensus.
Dell Technologies (DELL) was one bright spot, however. Shares surged 11% in the premarket after Dell guided for $13 billion in AI server revenue in the first quarter.
“While most investors were bracing for a significant cut to the prior telegraphed F27 EPS growth of 15%, Dell went the other way and guided F27 EPS growth of 25%,” wrote Wamsi Mohan of Bank of America Securities. Bank of America raised its price target on DELL from $135 to $155.
