U.S. stocks swung on Thursday as investors digested new inflation and labor data that tested high expectations for a quarter-percentage-point rate cut next week.
The S&P 500 (^GSPC) fell 0.2% while the Nasdaq Composite (^IXIC) gained 0.1%, following sharp closing gains fueled by a tech rally. The Dow Jones Industrial Average (^DJI) fell 0.5%.
The market is rallying after a Wednesday slump that rekindled enthusiasm for technology companies and lifted stocks out of a slump. Those losses came as the latest consumer inflation dashed hopes for a 0.5% rate cut by the Federal Reserve.
Read more: Fed Forecasts for 2024: What Experts Say About the Possibility of a Rate Cut
Before the bell, the August producer price index indicated that inflationary pressures are easing enough for the Fed to decide to cut rates.
Wholesale prices rose 0.2% month-on-month, slightly above what economists had expected. On an annual basis, PPI rose 1.7%, in line with expectations, while the July reading was revised down.
Meanwhile, data showed initial jobless claims rose more than expected to 230,000 last week, up 2,000 from the previous week. Traders’ odds of a 25 basis point cut rose slightly to 87% after the reports, up from 50% just a few days ago.
On the business front, shares of Moderna ( MRNA ) plunged 17% after the biotech giant cut its annual revenue guidance for 2025. The company also said it will cut its annual R&D budget by about $1.1 billion through 2027.
Live1 update
