Futures tied to the Dow Jones industrial average rose 412 points, or 1.2%. S&P 500 futures added nearly 2% and Nasdaq-100 futures gained 3%. The producer price index, a measure of wholesale inflation, rose 0.2% for the month, compared with the consensus estimate for a 0.4% rise from the Dow Jones. The report comes after last week’s consumer price index data showed signs of easing inflationary pressures last month, sparking a sharp rally. Walmart shares jumped in early trading after the company beat Wall Street’s profit and revenue estimates and boosted full-year guidance. Home Depot also reported strong results but maintained guidance for the full year. Its shares fell slightly. “After last week’s CPI decline sparked a massive equity rally and dollar reversal, the key issue for markets this week will be the Fed’s response,” Huw Roberts, head of analysis at Quant Insight, wrote in a note Monday. Elsewhere, Taiwan Semiconductor, Louisiana-Pacific and Paramount jumped after regulatory filings showed Warren Buffett’s Berkshire Hathaway had bought new positions in the former two and increased its stake in the latter. Earnings season continues this week with retail reports from Target, Lowe’s, Bath and Body Works, Macy’s, Kohl’s and Foot Locker on deck.
