WASHINGTON: Wall Street stocks slid in early trading Thursday, with investors digesting producer inflation data which added to concerns that price increases might remain sticky.
About 15 minutes into trading, the Dow Jones Industrial Average lost 0.1 percent at 43,922.73, while the broad-based S&P 500 retreated 0.2 percent to 5,973.76.
The tech-heavy Nasdaq Composite Index dropped 0.3 percent to 19,179.60.
“The economic data released this morning is causing a bit of a stir and a little bit of pause because it’s demonstrating that inflation at the producer level is sticky itself,” said Patrick O’Hare of Briefing.com.
Wall St edges higher after inflation data keeps Fed rate-cut hopes intact
The producer price index climbed 0.2 percent last month according to Labor Department data, accelerating from September.
From a year ago, wholesale prices rose 2.4 percent, up as well from September’s figure.
This could give the Federal Reserve some pause as it tries to balance its fight against inflation with a healthy labor market.
“The higher interest rates, I think, are kind of acting as a headwind of sorts for the equity market right now,” O’Hare added.
Among individual companies, Disney shares surged 10.5 percent on expectation-beating financial results.
But markets have generally come off a post-election surge after stocks hit fresh records last week on the swift resolution of US presidential election results.
This week, investors will also be eyeing retail sales figures as well as a speech by Fed Chair Jerome Powell in Texas for signs on how the central bank views the state of the economy.
Source: Brecorder
