The Dow Jones Industrial Average declined on Thursday, ending a three-day winning streak, following the release of higher-than-expected U.S. inflation data which led to an increase in Treasury yields. Nvidia shares also faced downward pressure.
The Dow, comprising 30 stocks, dropped 137.66 points, or 0.35%, to close at 38,905.66. The Nasdaq Composite fell by 0.3% to 16,128.53, while the S&P 500 slipped by 0.29% to end the session at 5,150.48.
In February, the producer price index, a gauge of wholesale inflation, rose by 0.6%. Excluding food and energy prices, the core PPI increased by 0.3%. Economists surveyed by Dow Jones had anticipated a 0.3% gain for the headline PPI and a 0.2% rise for the core reading. Initially, stocks showed resilience after the report was released but lost momentum shortly thereafter.
Chris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley, commented, “The questions now are, will traders reassess how soon the Fed will cut rates, and whether that will slow down the stock market rally substantially?”
Following the release of the high inflation report, bond yields surged, with the benchmark 10-year Treasury yield rising by approximately 10 basis points to 4.29%. Nvidia shares experienced a decline for the fourth time in five sessions, falling by more than 3%.
Source (CNBC)
