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New York stock exchanges closed in the red this Thursday, pressured by the unexpected “jump” in the producer price index (IPP) of the world’s largest economy, once again fueling fears that the Federal Reserve (Fed) may wait until later before to begin relieving policy rates. Shares of chip manufacturers returned to losses, contributing to the negative performance of the markets.
With the real estate and “utilities” sectors (water, electricity and gas) being the most penalized – due to greater sensitivity to interest rates – semiconductors also gave ground again, with the “AI darling” Nvidia losing 3.24%.
The Dow Jones fell 0.35%, to 38,905.66 points, while the S&P 500, the global benchmark, dropped 0.29%, ending the day at 5,150.48 points. The technological Nasdaq Composite lost 0.3%, to 16,128.53 points.
Among the “big tech”, Amazon advanced 1.24%, Alphabet gained 2.54%, Apple rose 1.09% and Microsoft advanced 2.44%. The Target fell 0.75%. Tesla stood out by losing 4.12%.
The S&P 500 remains up about 8% for the year to date.
The small cap Russell 2000 (.RUT), opens new tab fell 2% on the day, underperforming the broader market.
“There’s nervousness about the market being very extended with a relatively narrow breath. You can see the anxiety from the hotter PPI expressed in the Russell index of small and midcap names,” said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
