2023-08-11 14:09:02
In early trading, the Dow Jones index lost 99.49 points, or 0.28% to 35,076.66 points and the broader Standard & Poor’s 500 fell 0.54% to 4,444.71 points.
The Nasdaq Composite lost 0.84% or -115.93 points to 13,622.051.
An hour before the opening of Wall Street, the Labor Department reported that producer prices (PPI) in the United States rose in July by 0.3% month on month and 0.8% year on year. following respectively a stability and an increase of 0.2% in June.
Producer prices accelerated in July on the back of a rebound in the cost of services, but the trend remained consistent with moderating inflationary pressures.
“Previous numbers have been revised down, so it’s not that bad, but the market is going to focus on the July data,” commented Robert Pavlik, senior portfolio manager, Dakota Wealth.
The yield on two-year Treasury bills, which moves in line with short-term interest rate expectations, climbed to 4.9% following the data, putting pressure on rate-sensitive large-cap growth stocks of interest.
“Maybe the Fed might raise rates another 25 basis points in September,” Pavlik added.
Investors are also waiting at 2:00 p.m. GMT for the first estimate of Michigan’s confidence index for August.
In stocks, healthcare provider Cano Health fell 50.66% at the open following saying Thursday it doubted it would still be in business within a year.
U.S.-listed shares of Chinese firms Alibaba and JD.com fell 2.66% and 4.78% respectively as investors were disappointed by Beijing’s latest stimulus.
(Written by Kate Entringer)
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