Date of Award


Degree Type


Degree Name

Master of Science (MS)


Economics and Finance


Increases or decreases in stock prices will determine how much an investor’s wealth will shrink or grow in the stock market. One set of important factors that influences the stock market is macroeconomic indicators, like inflation news. The Consumer Price Index (CPI) and The Producer Price Index (PPI) are among the most important measures of inflation conditions and overall economic conditions. Adams, McQueen and Wood have already identified the relationship between inflation news and stock return. In their paper published in 2004, they found the unexpected increases in both PPI and CPI could cause stock prices to fall. In their paper, they explored the responses of stock intraday data and the unexpected changes in the Producer Price Index and Consumer Price Index before and on the news announcement date from 1977 to 1987.