S&P 500, Nasdaq, Dow Under Pressure as Inflation and Rate Cut Path Dominate
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On the day President-elect Donald Trump rang the opening bell at the New York Stock Exchange, Wall Street couldn't extend the strong rally that had followed his election win. Investors turned their attention to new inflation data, which raised doubts about the future direction of interest rates.
The Dow Jones Industrial Average and the S&P 500 both fell by about 0.5%, while the Nasdaq Composite dropped approximately 0.6%. Apple shares rose less than 1%, reaching a record high.
In the bond market, the 10-year Treasury yield increased by 5 basis points, closing at 4.32%, its highest level since November 22.
Thursday's inflation data, including the producer price index (PPI), added another layer to the inflation picture. The PPI rose 0.4% month-over-month, above the expected 0.2% increase, which raised concerns about the Fed potentially holding rates steady in January.
This came after the consumer price index (CPI) reading earlier in the week had boosted optimism for a December rate cut, with market odds of a 0.25% reduction reaching nearly 99%.
Additionally, Adobe's disappointing revenue forecast dampened sentiment. The software company's struggles to see returns from its AI investments caused its shares to drop nearly 14%.
Paraphrasing text from "Reuters" all rights reserved by the original author.
