On December 12, 2024, the U.S. Bureau of Labor Statistics reported that the Producer Price Index (PPI) for November increased by 0.4% month-over-month, surpassing economists’ expectations of a 0.2% rise. This marks the largest monthly gain in seven months. Year-over-year, the PPI rose by 3.0%, up from 2.6% in October.
Following the PPI release, U.S. equity markets declined. The Dow Jones Industrial Average fell by 0.53%, marking its sixth consecutive day of losses. The S&P 500 Index decreased by 0.54%, and the Nasdaq Composite Index dropped by 0.66%. Major technology stocks also saw declines, with NVIDIA down 1.41% and Tesla down 1.57%. Cryptocurrency-related stocks were mixed; MicroStrategy fell by 4.67%, while Coinbase experienced a slight decline of 0.27%.
In the cryptocurrency market, the decentralized finance (DeFi) sector showed strength. This was partly due to reports that the Trump family-associated fund, World Liberty Financial (WLFI), purchased Ethereum (ETH), Aave (AAVE), and Chainlink (LINK), leading to a broad increase in DeFi token prices. WLFI’s crypto holdings are valued at approximately $74.9 million, with ETH being the largest position.
In the foreign exchange and commodities markets, the inflation data contributed to a 0.31% rise in the U.S. Dollar Index, marking its fifth consecutive day of gains. Crude oil prices declined, with both West Texas Intermediate (WTI) and Brent crude oil prices moving lower. Gold prices also fell, with London spot gold decreasing by 1.33%.