US Equity Indexes Rise, Treasury Yields Drop as Producer Price Inflation Hots up Less Than Forecast

12:44 PM EDT, 06/12/2025 (MT Newswires) -- US equity indexes traded higher while government bond yields slumped with the dollar as the producer price inflation for May failed to show substantial evidence that tariffs are lifting price pressures just yet.

The Nasdaq Composite rose 0.1% to 19,640.1, and the S&P 500 climbed 0.2% to 6,031.2. The Dow Jones Industrial Average advanced 0.5% to 43,073.5. Technology and utilities led the gainers, while communication services and industrials were among the steepest decliners.

Any positive impact of the recent trade deal between the US and China announced earlier in the week was blunted by Trump's warning late Wednesday that he would impose tariffs on countries that failed to agree to new trade deals. "Now, at a certain point, we're just going to send letters out, and I think you understand that, saying this is the deal," he told reporters at the Kennedy Center, according to news outlets. "You can take it, or you can leave it."

In economic news, producer prices rebounded less than expected last month, adding to a narrative that cost pressures remain muted. The producer price index increased 0.1% on a seasonally adjusted basis in May, the Bureau of Labor Statistics reported Thursday. A survey compiled by Bloomberg pointed to a 0.2% gain. The latest reading marks the first increase in three months.

May's core producer price index rose 0.1%, below the expected 0.3% increase and a 0.2% drop in April.

Most US Treasury yields fell, with the 10-year down 5.1 basis points to 4.36% and the two-year rate was 3.7 basis points lower at 3.91%.

The ICE US Dollar Index fell 0.6% to 98.56.

Gold futures surged 1.9% to $3,406.5 per ounce.

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