Producer Price Index (PPI) Surge: The July PPI increased by 0.9% month-over-month, the largest rise since June 2022, driven by tariff impacts, with annual headline PPI rising from 2.4% to 3.3%, and core PPI from 2.6% to 3.7%. This poses challenges for small-cap ETFs like the iShares Russell 2000 ETF (IWM), which struggle to pass on costs due to narrower margins compared to large-cap companies.
Investment Strategies Amid High PPI: Investors may consider large-cap ETFs such as SPDR S&P 500 ETF Trust (SPY) for stability during high PPI periods, while also looking at quality/value-focused small-cap ETFs like iShares S&P Small-Cap 600 Value ETF (IJS) and Invesco S&P SmallCap 600 Pure Value ETF (RZV) to mitigate cost pressures. Sector hedges like Energy Select Sector SPDR Fund (XLE) can also be beneficial when commodity prices drive inflation.
Wall Street analysts forecast XLI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XLI is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast XLI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XLI is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 166.360
Low
Averages
High
Current: 166.360
Low
Averages
High
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
