US Inflation data drives market losses; Dow slides for the sixth day, led by tech sector declines
On Thursday, US stocks fell after a stronger-than-expected inflation report dampened investor sentiment, reports CNBC.
The Nasdaq Composite dropped 0.66 percent, slipping below the 20,000 threshold to close at 19,902.84.
The S&P 500 fell 0.54 percent, ending at 6,051.25, while the Dow Jones Industrial Average declined 234.44 points, or 0.53 percent, to settle at 43,914.12. This marked the Dow’s sixth consecutive losing session.
Technology stocks were among the key decliners.
Nvidia dropped more than 1 percent, while Adobe plunged over 13 percent following a disappointing 2025 outlook. Other major tech companies, including Meta Platforms, Alphabet, and Amazon, also closed lower.
The US producer price index, which measures wholesale prices, rose 0.4 percent in November, surpassing economists' expectations of a 0.2 percent increase.
The data pushed the 10-year Treasury yield to its highest level in two weeks, further weighing on equities.
This inflation data followed the US consumer price index report earlier in the month, which aligned with estimates and fuelled speculation about the Federal Reserve’s next move.
Many investors now anticipate the Fed will cut interest rates during its upcoming policy meeting.
Keith Buchanan, senior portfolio manager at Globalt Investments, told CNBC, “The trajectory of disinflation is promising and concerning at the same time.”
He noted that while US inflation is gradually declining below 3 percent, progress towards the Fed’s 2 percent target appears to be slowing.
Despite this, Buchanan believes the Federal Reserve will reduce rates next week. Fed funds futures data from the CME FedWatch Tool indicates a 95 percent likelihood of a quarter-point rate cut.
“If they had an idea of a plan that didn’t match what the market expected this close to the meeting, we’d know it,” Buchanan added.
Thursday’s downturn came after a mixed session earlier in the week.
On Wednesday, the Nasdaq surpassed 20,000 for the first time, setting new all-time and closing highs. The S&P 500 also gained during that session, while the Dow posted losses.
Investor focus remains on upcoming Federal Reserve decisions and their potential impact on market momentum.
