Stock market today: Indexes slip after wholesale inflation comes in hotter than expected
Chair of the Federal Reserve of the United States Jerome Powell speaks during a Senate Banking, Housing, and Urban Affairs Committee hearing on the Semiannual Monetary Policy Report to Congress at the U.S. Capitol on July 9, 2024 in Washington, DC. Powell in earlier remarks was quoted, “we want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing or loosening policy.”
Indexes fell on Thursday after the latest inflation update showed wholesale prices rising slightly more than expected.
The Nasdaq Composite is coming off of a record-setting day on Wednesday, closing above 20,000 for the first time as tech soared. Tesla stock hit a fresh all-time high in the previous session, helping Elon Musk claim the title of first person to achieve a net worth of $400 billion.
The producer price index on Thursday showed wholesale prices rose 0.4% in November, according to data from the Bureau of Labor Statistics. That’s higher than consensus estimates of 0.2%, and marks a 3% rise year-over-year.
Meanwhile, core PPI, which excluded more volatile food and energy prices, rose 0.2%, which was in line with economists’ expectations.
The data follows the release of the consumer price index on Wednesday, which showed inflation coming in at 2.7% on an annual basis in November, slightly outpacing October’s 2.6% rise but in line with expectations.
If inflation remains hot, it could hamstring the Federal Reserve’s ability to cut interest rates. Traders seem to think a mild 25 basis point cut at the Fed’s meeting next week, though, is all but certain, according to CME’s FedWatch tool.
In other news, jobless claims came in at 242,000 for last week, the Labor Department reported on Thursday. That number marks the highest level since early October, and comes in above forecasts of 220,000.
Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Thursday:
- S&P 500: 6,067.32, down 0.28%
- Dow Jones Industrial Average: 44,097.80, down 0.11% (-50.76 points)
- Nasdaq composite: 19,961.35, down 0.38%
Here’s what else is happening:
- Donald Trump rang the opening bell at the New York Stock Exchange on Thursday.
- One of Wall Street’s biggest bulls sees the S&P 500 soaring 16% early next year before a sharp sell-off in the 2nd half
- There’s one final way Biden can fund Ukraine’s fight against Russia, researchers say
- Sustainability-linked bond sales have tanked amid a shift in ESG sentiment
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil ticked lower 0.6% to $69.83 a barrel. Brent crude, the international benchmark, fell 0.5% to $73.17 a barrel.
- Gold fell 1.7% $2,709 an ounce.
- The 10-year Treasury yield was up three basis points to 4.306%.
- Bitcoin was up 1.6% to trade at $101,451
