Rising Producer Prices, Warsh’s Economic Outlook, Financial Earnings
By Juliegrace Brufke | Quincy News Correspondent
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Washington (Quincy News) — Market Recap: U.S. stocks recovered Thursday as stronger corporate earnings helped offset continued swings in technology shares. The Dow climbed 1.1%, the S&P 500 gained 0.3% and the Nasdaq edged up 0.1%. The benchmark 10-year Treasury yield fell to about 5.09%, down from 5.19% Wednesday.
The Producer Price Index, a gauge of the prices U.S. producers receive for their goods and services, rose 1.3% in September. That was the biggest monthly increase since March 2022, and producer prices were up 6.3% from a year earlier. The report gives the Fed another inflation reading ahead of its Oct. 27-28 meeting, though the PPI measures what producers receive, not what consumers pay.
Fed Update: Warsh Offers No Hint on Next Rate Move
Federal Reserve Chair Kevin Warsh offered no new guidance on interest rates during a discussion in Bangkok late Thursday U.S. time. He described a resilient economy despite persistent inflation.
“I don’t prejudge meetings,” Warsh said during the discussion with International Monetary Fund Managing Director Kristalina Georgieva. Economic developments since September had “broadly conformed to our expectations,” he added.
His remarks followed stronger-than-expected consumer and producer inflation reports this week. The Fed raised its benchmark rate a quarter point in September to a range of 3.75% to 4%. Its next decision is due Oct. 28.
Warsh pointed to strong U.S. investment extending beyond artificial intelligence. He said AI spending is increasing demand before longer-term productivity gains can expand supply, complicating the Fed’s efforts to keep prices stable.
“The path from where we are to there is likely to be a very bumpy one,” he said.
Warsh also announced that the Fed’s productivity-and-jobs task force would hold its first field hearing Nov. 16 in the Bay Area to examine how AI could reshape employment.
-Reporting by Jacqueline Policastro, Quincy News Correspondent
Today’s Focus: Friday brings reports on import prices and industrial production, offering fresh clues about inflation and how busy U.S. factories are.
Financial companies also reported earnings this morning. Regions said earnings available to common shareholders rose 11% from a year earlier. Travelers reported slightly higher profits and record income from its investments
ON THE SCHEDULE FOR FRIDAY, OCTOBER 16, 2026
-8:30 a.m. ET – September import and export prices
-9:15 a.m. ET – September industrial production and capacity utilization
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