NEW YORK (AP) — U.S. stock indexes were volatile Thursday, driven by some underlying influences. discouraging data above economy.
The S&P 500 fell 0.2%, potentially heading for a third decline in the past four days. That would be seen as a stumble in the massive rally that pushed the index toward its closing price. best years of the millennium.
As of 12:32 pm ET, the Dow Jones Industrial Average was down 71 points (0.2%), and the Nasdaq Composite was down 0.3% from its all-time high set the day before.
Morning reports said more U.S. workers filed for unemployment benefits last week than expected. Meanwhile, another update showed that wholesale-level inflation before it reaches U.S. consumers was higher last month than economists expected.
Neither report suggests impending disaster, but they do suggest one of the silver linings that have propelled the S&P 500 index higher. The highest record so far this year is 57.: Inflation has slowed enough to convince the Federal Reserve to continue cutting interest rates, while the economy remains strong enough not to slip into recession.
Chris Larkin, managing director of trading and investments at Morgan Stanley's E-Trade, said the weaker update on the job market could be the more problematic of the two reports for the market. The rise in egg prices may be behind the worse-than-expected inflation rate.
“The fact that it's only been one week does not negate the fact that labor market statistics have been relatively stable and strong up until now, but the Fed is not prepared to be sensitive to signs of a softening in the employment situation,” he said. “
Traders say the Fed is almost certain to cut key interest rates when it meets next week. If their claims are correct, it would be the Fed's third consecutive interest rate cut. Interest rate cuts started in September From the height of 20 years. We look forward to supporting Job market slowdown After the inflation rate almost fell to the 2% target.
Lowering interest rates would boost the economy and investment prices, but could also spur inflation further.
If the Fed cuts rates next week, it would follow other central banks that cut rates on Thursday. of European Central Bank cuts interest rates As many investors had expected, the policy rate was cut by 0.5 percentage point, and the Swiss National Bank cut its policy rate by another 0.5 percentage point.
In response to this decision, the Swiss Central Bank noted that there is uncertainty about how the victory of US President-elect Donald Trump will affect economic policy and the direction of European politics.
Mr Trump spoke Tariffs and other policies It could transform global trade. he I rang the bell to start trading. On Thursday, the “USA'' chant rang out at the New York Stock Exchange.
On Wall Street, Adobe fell 12.6% despite reporting that its latest quarter's profit beat analysts' expectations. The company's profit and sales forecasts for next fiscal year were slightly lower than analysts' expectations.
Warner Bros. Discovery soared 14.6% after announcing a new corporate structure that will separate its streaming business and movie studio from its traditional television business. Chief Executive David Zaslav said the move “gives us greater flexibility for potential future strategic opportunities” and increases speculation about a spin-off or sale.
Kroger rose 3.3% after the company said it would return to stock buybacks now that its stock price has fallen. Merge attempt with Albertsons is off. Kroger's board of directors has authorized a stock repurchase program of up to $7.5 billion, replacing the existing $1 billion authorization.
In overseas stock markets, European indexes remained relatively steady due to the European Central Bank's interest rate cuts.
Asian markets were strong. The index rose 1.2% in Hong Kong and 0.8% in Shanghai. leaders met Setting economic plans and goals for the coming year in Beijing.
South Korea's Kospi rose 1.6%, marking the third straight quarter of gains of at least 1%, but has since fallen back. last week's political turmoil The president then briefly declared martial law.
In the bond market, the yield on the 10-year U.S. Treasury rose to 4.31% from 4.27% late Wednesday. The two-year Treasury yield, which more accurately reflects expectations for the Fed, rose to 4.17% from 4.16%.
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AP Business writers Matt Ott and Elaine Kurtenbach contributed.
