Stocks showed little change on Thursday as traders assessed a higher-than-expected wholesale inflation figure and a downturn in market heavyweight Nvidia.
Investors demonstrated interest in major tech stocks such as Apple and Microsoft early in the day. Notably, trading platform Robinhood saw a 12% increase after reporting a 16% rise in assets under custody for February compared to the previous month. Meanwhile, electric vehicle startup Fisker experienced a significant 37% decline following reports in The Wall Street Journal indicating the company had hired restructuring advisors in preparation for a potential bankruptcy filing. Chipmaker Nvidia also experienced a modest 2% pullback.
In February, the producer price index, a key measure of wholesale inflation, rose by 0.6%. Excluding food and energy costs, the core PPI increased by 0.3% in the same month. This outperformed the forecasted 0.3% increase in the headline PPI for February and a 0.2% rise in the core reading, as predicted by economists surveyed by Dow Jones.
Chris Larkin, the managing director of trading and investing at E-Trade from Morgan Stanley, remarked, “The current questions revolve around whether traders will reassess the timing of potential rate cuts by the Fed, and if this adjustment could have a dampening effect on the stock market rally. So far, the market has remained resilient in the face of concerns regarding persistent inflation and the cautious stance of the Fed.”
Source (CNBC)
