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S&P 500, Nasdaq wobble amid more signs of cooling inflation

Photo of Vaseline Vaseline4 weeks ago
0 2 minutes read
S&P 500, Nasdaq wobble amid more signs of cooling inflation

U.S. stocks wobbled on Thursday as investors digested fresh inflation and labor data, testing high expectations for a quarter-point rate cut next week.

The S&P 500 (^GSPC) fell 0.2%, while the Nasdaq Composite (^IXIC) gained 0.1%, coming off strong closing gains fueled by a tech rally. The Dow Jones Industrial Average (^DJI) fell 0.5%.

The market is regrouping after a swing on Wednesday that revived enthusiasm for technicians that pulled stocks out of a slide. Those losses came as the latest consumer inflation reading dented hopes for a 0.5% rate cut by the Federal Reserve.

Read more: Fed forecasts for 2024: What experts say about the possibility of a rate cut

Before the bell, August’s producer price index provided signs that inflationary pressures were cooling enough for the Fed to start cutting rates.

Wholesale prices rose at a 0.2 percent rate month-on-month, slightly more than economists had anticipated. On an annual basis, the PPI rose 1.7%, in line with expectations, while July’s reading was revised downward.

Meanwhile, data showed initial jobless claims rose more than expected to 230,000 last week, up 2,000 from the previous weekly period. Traders’ odds of a 25 basis point discount rose to 87% after the reports, compared to 50% just a few days ago.

On the corporate front, shares of Moderna ( MRNA ) fell 17% after the biotech giant cut its annual revenue forecast for 2025. The company also said it would cut its annual research and development budget by about 1.1 billion dollars by 2027.

Live2 updates

  • Delta issues strong outlook despite summer tech glitches

    Shares of Delta ( DAL ) jumped before slipping into negative territory on Thursday after the airline said full-year profit would come in at the midpoint of its previously forecast range despite a computer error earlier this summer.

    The airline sees full-year adjusted earnings per share of $6.50 or above, up from a previous reading of $6 to $7.

    The outlook suggests that the financial impact of a worldwide technology outage in July is not expected to be too severe.

  • Inventories hold on lower inflation data, higher than expected, jobless claims

    Stocks were little changed on Thursday as investors digested a new batch of data that could provide clues about how much of a rate cut the Federal Reserve will decide to implement at its policy meeting this month.

    The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) were flat, coming off strong closing gains fueled by a tech rally. The Dow Jones Industrial Average (^DJI) was also little changed.

    As for inflation data, the producer price index rose 0.2 percent in August from a month earlier, slightly more than economists had expected. Meanwhile, July’s PPI reading was revised down. Year-on-year, wholesale prices rose 1.7%, in line with expectations.

    Initial weekly jobless claims rose 2,000 to 230,000, more than economists had anticipated.

    Investors are paying close attention to these data as the Federal Reserve prepares to meet next week. Markets had widely anticipated a rate cut. What is not known is how big that cut will be.

Photo of Vaseline Vaseline4 weeks ago
0 2 minutes read
Photo of Vaseline

Vaseline

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