Stock Market Update: S&P 500, Nasdaq Dip as Inflation Progress Falters
US stock markets faced a setback on Wednesday, with key indices retreating after fresh data suggested inflation remains stubbornly high, challenging the Federal Reserve’s efforts to hit its 2% target.
The S&P 500 (^GSPC) dropped 0.4%, while the Dow Jones Industrial Average (^DJI) slid 0.3%. The Nasdaq Composite (^IXIC), led by losses in tech stocks, declined by 0.6%. This follows Tuesday’s record highs, dampening investor sentiment ahead of the Thanksgiving holiday, when markets will close Thursday and have shortened trading hours on Friday.
Inflation Data Raises Concerns
The Federal Reserve’s preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) index, showed modest growth in October. Core PCE, which excludes volatile food and energy prices, rose 0.3% month-over-month, aligning with Wall Street expectations. Annually, core prices increased by 2.8%, slightly above September’s 2.7%.
This flat progress in inflation control has raised questions about the Fed’s next move. Current market forecasts, based on the CME FedWatch Tool, indicate a 34% probability that the Fed will hold interest rates steady at its upcoming meeting—a notable increase from 24% a month earlier.
Broader Economic Indicators
Additional economic reports released Wednesday painted a mixed picture. The second estimate for third-quarter GDP remained unchanged, showing a 2.8% annualized growth rate. Meanwhile, the labor market showed resilience, with weekly jobless claims dropping to 213,000 from the prior week’s 215,000—indicating continued strength in employment.
Corporate and Trade Developments
In corporate news, Dell Technologies (DELL) shares plunged over 12% after quarterly revenue missed expectations, reflecting weak PC demand. Similarly, HP (HPQ) suffered an 11% loss post-earnings, compounding concerns in the tech hardware sector.
On the trade front, President-elect Donald Trump appointed Jamieson Greer as the new US Trade Representative. Greer, a key figure in Trump’s first-term China tariff policies, has sparked speculation about the administration’s approach to future trade agreements and tariffs on top US trading partners.
Outlook
As markets enter a holiday-shortened week, investors are cautiously navigating a mix of economic signals and corporate challenges. Persistent inflation and trade policy uncertainties remain key themes that could shape market direction in the coming weeks.
For updates on the stock market and economic trends, stay tuned to our blog.
Source : Swifteradio.com
