## [# Here’s What’s Happening in Markets Today: April 11](/sections/news/heres-whats-happening-markets-today-april-11)
# Here’s What’s Happening in Markets Today: April 11
Investors digest another inflation report, and Europe signals potential rate cuts.
[](/authors/kristin-myers)
[By Kristin Myers](/authors/kristin-myers)
Apr 11, 2024
Edited by: Ron Day
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Stock and bond markets were mixed Thursday morning as investors digested another inflation report.
The Producer Price Index (PPI), a measure of wholesale inflation rose, 0.2% for the month of March according to the Labor Department. On a yearly basis, PPI rose 2.1%, the biggest jump since April of last year. Inflation came in weaker than economists had forecast, stoking hopes once again about the potential for rate cuts.
Mirroring the S&P 500 and the Dow, SPY, the [**SPDR S&P 500 ETF Trust**](/SPY) and DIA, the [**SPDR Dow Jones Industrial Average ETF Trust**](/dia) took a leg lower, slipping a quarter of a percentage point and nearly half a percentage point respectively. QQQ, the tech-heavy [**Invesco QQQ Trust**](/qqq) rose roughly 0.1% as the Nasdaq was also in the green early Thursday.
The weaker than anticipated PPI report comes just a day after the Consumer Price Index (CPI) rose 0.4% for the month, more than economists had originally forecast. Yesterday's report soured investor hopes and painted a picture of persistent and stubborn inflation. According to the CME Fed Watch Tool, traders now believe the Federal Reserve will hold rates steady through June's policy meeting, with a greater number of investors looking to July and September's meetings for a potential rate cut.
Treasury yields dropped after today's inflation report, and bond traders [have been getting whiplash](/sections/news/tlt-investors-have-been-hit-hard-inflation-jumps-whats-next) as many continue to question whether the Fed will cut rates at all this year. TLT, the[ **iShares 20+ Year Treasury Bond ETF**](/tlt) dropped more than half a percentage point after PPI data was released.
With high hopes that the Fed was on track to defeat inflation and cut rates, investors added nearly $25B to TLT last year. With TLT on a rollercoaster ride, investors could be rethinking that strategy. According to etf.com data, since the start of the year, TLT has lost close to $850M.
***TLT YTD Flows***
Across the pond, European markets sank after the European Central Bank (ECB) decided to hold rates steady. VGK, the [**Vanguard FTSE Europe ETF**](/vgk), IEUR, the [**iShares Core MSCI Europe ETF**](/ieur), and IEV, the [**iShares Europe ETF**](/iev) all dropped close to 1% on the news.
But for investors, European ETFs could prove to be a good buying opportunity after the ECB signaled that rate cuts could be on the way. In a release on Thursday the bank noted that with improving inflation outlook "it would be appropriate to reduce the current level of monetary policy restriction."
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[ Kristin Myers SVP Content/EIC ](/authors/kristin-myers)
Kristin Myers is an award-winning journalist, who covers business and finance news. She is the current Senior Vice President of Content and Editor in… [View Bio](/authors/kristin-myers)
Related Topics [Equity](http://www.etf.com/topics/equity)
[Inflation](http://www.etf.com/topics/inflation)
[Bond](http://www.etf.com/topics/bond)
[Treasury](http://www.etf.com/topics/treasury)
[Europe](http://www.etf.com/topics/europe)