President-elect Donald Trump rang the opening bell on Thursday morning at the New York Stock Exchange as tech stocks edged lower after fresh inflation data cast doubt on investor confidence for the path of interest rates ahead.
The Dow Jones Industrial Average (^DJI) hugged the flat line, while the S&P 500 (^GSPC) slipped roughly 0.2%. The tech-heavy Nasdaq Composite (^IXIC) fell 0.2% to lead the way lower.
Investors received another piece of the inflation puzzle — an update on wholesale prices — after the latest consumer inflation data invigorated stocks on Wednesday, lifting the Nasdaq above 20,000 for the first time.
The in-line consumer price index reading cleared one of the last remaining risks to easing by the Fed in December. That boosted bets on a quarter-point rate cut in December to a near 99% chance, per the CME FedWatch tool.
But the November producer price index released on Thursday morning came in hotter than expected, rising 0.4% from the previous month. Economists had been expecting an increase of 0.2%. That has put the chances of the Fed holding rates steady in January in focus, as several officials have voiced a cautious stance on policy.
Elsewhere in central banks, the Swiss National Bank unexpectedly lowered its key rate by 0.5%, its biggest cut in almost 10 years. The move set the stage for the European Central Bank decision later Thursday, expected to deliver the fourth rate cut this year as the region’s economy struggles.
A downbeat revenue forecast from Adobe (ADBE) also helped dampen the mood, revealing the Photoshop maker’s struggle for a payoff from its AI investments. Shares in the software maker sank about 12% in early trading.
