In a significant turnaround, US equity indexes experienced a substantial uptick, fueled by a decline in government bond yields and unexpected cooling in inflation metrics. The Nasdaq Composite surged by 2%, reaching 17,121.1 points. Meanwhile, the S&P 500 also saw gains, climbing 1.4% to hit 5,417.2, while the Dow Jones Industrial Average rose by 0.8%, ending the day at 39,681.3.
This positive momentum was reflected across nearly all sectors, with energy being the sole exception standing in the red during intraday trading. The CBOE's Volatility Index, commonly referred to as the VIX and often seen as a barometer of market anxiety, fell by 7.6%, settling at 19.14, indicating less fear among investors. In the economic landscape, the latest figures from the US Producer Price Index (PPI) revealed a modest climb of 0.1% in July, following a 0.2% increase recorded in June.
This rate fell short of the anticipated 0.2% gain predicted by a survey conducted by Bloomberg. Furthermore, when food and energy prices are excluded, the core PPI remained unchanged, contrasting with expectations of a 0.2% gain and reflecting a downturn from June's 0.3% uptick. Year-over-year, the PPI recorded a 2.2% increase in July, while the core PPI demonstrated a year-over-year growth of 2.4%, which represents a slowdown compared to the previous month. On the Treasury front, the movement in yields was marked by most rates declining, specifically the 10-year yield, which decreased by 5.3 basis points to 3.86%.
Similarly, the yield on the two-year notes fell by 6.7 basis points to 3.95%. In the commodities market, West Texas Intermediate crude oil saw a dip of 1.8%, priced at $78.51 per barrel. Shifting our focus to the corporate sector, notable changes were announced at Starbucks, where Brian Niccol has been appointed chair and chief executive officer, effective September 9.
This transition comes as Laxman Narasimhan resigns from his roles as CEO and board member. In the interim, Chief Financial Officer Rachel Ruggeri will step in as the acting chief executive until Niccol, who currently heads Chipotle Mexican Grill, assumes his new position. Following this news, shares of Starbucks escalated by an impressive 20% during the day, making it the top performer on both the S&P 500 and Nasdaq indexes.
In contrast, Chipotle's stocks took a hit, plunging over 9% intraday, marking it as the worst performer amongst S&P 500 constituents. As it relates to precious metals, gold experienced a slight increase, rising 0.2% to settle at $2,508.21 per ounce, while silver appreciated by 1%, reaching a price of $27.73. Amidst these developments, the stock performances of $SBUX and $CMG were central to discussions in financial circles, showcasing the volatile nature of the current market..