US stocks extend gains as fresh inflation data show wholesale prices falling by the most since 2020

• US stocks jumped on Wednesday after new data showed a continued decline in inflation.
• The producer price index fell by the most since April 2020 and came in below economists' estimates.
• Retail sales fell 0.1% in October, but rose modestly when excluding auto sales.

US stocks jumped on Wednesday, extending their gains from Tuesday's sharp rally, after fresh data showed a continued decline in inflation.

The producer price index fell 0.5% in October from the prior month, representing the largest decline since April 2020 and a sharp reversal from the 0.4% gain seen in September. On an annual basis, the PPI rose 1.3%, down from 2.2% in September.

The data should be encouraging to the Federal Reserve, as it has been aggressively hiking interest rates over the past 18 months in a bid to tame inflation without plunging the economy into a recession. Recent retail sales data suggests it's accomplishing this goal.

Retail sales slowed in October, falling 0.1% in its first monthly decline since March. The dip was less than forecasts for a 0.3% drop. And excluding auto sales and gasoline, sales increased 0.1%.

"Consumer spending momentum in Q4 will likely slow but the solid appetite for online shopping bodes well for the upcoming holiday sales period," LPL's chief economist Jeff Roach told Insider.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday:

• S&P 500: 4,510.67, up 0.33%

• Dow Jones Industrial Average: 34,945.97, up 0.34% (108.30 points)

• Nasdaq Composite: 14,153.67, up 0.42%

Here's what else is going on today:

• The US government's borrowing costs have surged past those of developing nations with much poorer debt ratings such as Vietnam, Morocco, and Bulgaria.
• Ken Griffin discussed everything from retail investors and choppy markets to raging wars and a looming recession during an interview on Tuesday. Here are the best quotes.
• Warren Buffett's Berkshire Hathaway sold a bunch of long-held stocks last quarter, and started building positions in one or more mystery companies.
• Tesla is now a top 10 holding of the Mormon Church's $47 billion stock portfolio. Here's what else it owns.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil dropped 1.19% to $77.33 a barrel. Brent crude, the international benchmark, fell 0.98% to $81.66 a barrel.
• Gold climbed 0.09% to $1,968.20 per ounce.
• The 10-year Treasury yield rose 6 basis point to 4.50%.
• Bitcoin jumped 1.76% to $36,175.