The New York stock market fell on the alert for consumer prices to be announced the next day, while producer price inflation remained high.
At the New York Stock Exchange (NYSE) on the 9th (Eastern Time), the Dow Jones Industrial Average closed at 36,319.98, down 112.24 points (0.31%) from the previous day.
The Standard & Poor’s (S&P) 500 index closed at 4,685.25, down 16.45 points (0.35%) from the battlefield, and the Nasdaq index, which focuses on technology stocks, closed at 15,886.54, down 95.81 points (0.60%) from the battlefield.
The three major indices, which had reached all-time highs until the previous day, closed lower.
The S&P 500 rose for eight consecutive trading days and returned to a decline for the first time in nine trading days.
The S&P 500 index rewrote its 64th all-time high so far this year.
Investors kept an eye on the producer price index released today and the consumer price index released the next day.
The US Producer Price Index (PPI) for October, released today, showed an increase in line with Wall Street expectations, but concerns about inflation did not subside.
The U.S. Department of Labor reported that the PPI rose 0.6% in October compared to the previous month.
It was in line with analysts’ expectations compiled earlier by the Wall Street Journal (WSJ) and was higher than the 0.5% recorded the previous month.
October’s PPI rose 8.6% year-on-year to the same level as the previous month, but this is the highest since data collection began in November 2010.
Excluding food and energy, the core PPI for October rose 0.4% MoM and 6.8% YoY.
In the previous month, they rose 0.2% and 6.8%, respectively.
More than 60% of the headline wholesale price inflation came from rising commodity costs.
Commodity costs rose 1.2% in October from the previous month.
In addition, truck freight costs rose 2.5% from the previous month, suggesting supply chain disruptions are affecting wholesale prices.
The next day, the consumer price index (CPI) comes out.
Although the Federal Reserve (Fed) regards the current inflation uptrend as temporary, market concerns that the Fed may be wrong if inflation does not slow may increase.
Economists expect the CPI for October to rise 0.6% from the previous month and to rise 5.9% year-over-year, according to the Wall Street Journal.
In the previous month, they rose 0.4% and 5.4%, respectively.
Core CPI is expected to rise 0.4% and 4.3%, respectively.
This is also expected to exceed the 0.2% and 4% gains recorded in the previous month.
Federal Reserve (Fed) Chairman Jerome Powell gave an opening speech at a conference on the same day, but did not make specific comments on US monetary policy.
Chairman Powell noted that the deep-rooted inequality in the US economy cannot be addressed by monetary policy.
San Francisco Fed President Mary Daley said he still expects inflation to ease in 2022.
Daley dismissed the possibility of an early rate hike, saying “an early rate hike could cause unnecessary economic pain.”
Tesla stock, which had fallen nearly 5% the previous day, fell 12% on the same day as investors were concerned, ending trading at the $1,023 level.
General Electric (GE) has announced that it will split into three separate companies focused on aviation, healthcare and energy.
Shares of the company rose more than 2% on the news.
PayPal shares fell by about 10% on news that sales were below expectations and that its forecast for the next quarter and the year were below expectations.
Nvidia’s share price rose more than 4% during the day on news that automakers are collaborating with several self-driving sensor companies for safety systems that automakers will launch as early as 2024. finished
Shares of US software and analytics firm Palantir fell more than 9% on news that sales beat expectations.
Robinhood shares fell more than 3% on news that customers’ personal information was leaked.
The price of Bitcoin reached an all-time high of over $68,000, and the price of Ethereum also crossed $4,800, continuing its all-time high.
By sector, stocks related to utilities, materials, consumer staples, and energy rose, while stocks related to consumer discretionary, finance, technology and health fell.
New York stock market experts said investors will pay more attention to economic indicators going forward.
“As the third-quarter earnings season draws to a close, economic indicators and progress as the economy reopens will become even more important to investors’ interest,” said John Stoltzfuss, chief investment strategist at Oppenheimer Asset Management in a report.
According to the Chicago Mercantile Exchange (CME) FedWatch, the Federal Funds (FF) interest rate futures market predicted a 54.1% chance of a rate hike in June next year.
The possibility of a rate hike in September was expected to be 79.1%.
At the Chicago Board Options Exchange (CBOE), the volatility index (VIX) rose 0.56 points (3.25%) to 17.78.