Dow and S&P 500 fall as sticky inflation report pressures stocks

US stocks declined on Thursday, with the S&P 500 and Dow Jones Industrial Average retreating from record highs amid signs of persistent inflation.

The broad market index slipped 0.21 per cent to close at 5,780.05, while the Dow dropped 57.88 points, or 0.14 per cent, finishing at 42,454.12. The Nasdaq Composite fell 0.05 per cent to end at 18,282.05.

Wall Street absorbed September’s Consumer Price Index, which increased by 0.2 per cent month-over-month, raising the annual inflation rate to 2.4 per cent, up from the previous year. This was higher than the expected 0.1 per cent monthly gain and 2.3 per cent year-over-year rate based on Dow Jones analysts’ forecasts. Notably, the year-over-year figure is the lowest since February 2021.

The data arrives amid growing concerns that the Federal Reserve may slow the pace of future rate cuts, just ahead of its first policy meeting following September’s significant rate move. Fed funds futures indicate an approximately 85 per cent chance of a quarter-point cut, according to CME Group’s FedWatch tool.

Looking at the S&P 500 sectors, most closed in the red. The best performer was Energy, which rose 0.79 per cent, while the Real Estate sector was the worst performer, losing 0.89 perc ent

In company news, Universal Insurance surged about 12 per cent as Hurricane Milton impacted Florida. Meanwhile, Pfizer fell 2.9 per cent after activist investor Starboard Value accused the company of threatening litigation against two former executives. Advanced Micro Devices dropped 4 per cent following the launch of a competing AI chip aimed at Nvidia.

In commodities, Crude oil futures surged over 3 per cent on Thursday as Hurricane Milton caused a rush at gas stations in Florida, while the market waits for Israel to strike Iran.

Futures

The SPI futures are pointing to a 0.04 per cent fall.

Currency

One Australian dollar at 7.50am was buying 67.41 US cents.

Commodities

Gold added 0.82 per cent. Silver gained 2.30 per cent. Copper rose 1.10 per cent. Oil gained 3.2 per cent.

Figures around the globe

European markets closed lower. London’s FTSE shed 0.07 per cent, Frankfurt lost 0.23 per cent, and Paris fell 0.24 per cent.

Turning to Asian markets, Tokyo’s Nikkei added 0.26 per cent, while Hong Kong’s Hang Seng gained 2.98 per cent and China’s Shanghai Composite added 1.32 per cent.

Yesterday, the Australian share market closed 0.43 per cent higher at 8223.

Ex – Dividends

WAM Research Ltd (ASX:WAX) is paying 5 cents 60 per cent franked
Turners Automotive (ASX:TRA) is paying 5.4831 cents 84.99 per cent franked

Dividends payable

Australian Finance Group Ltd (ASX:AFG)
BlackWall Ltd (ASX:BWF)
Cash Converters International Ltd (ASX:CCV)
Coventry Group Ltd (ASX:CYG)
Embelton Ltd (ASX:EMB)
Fonterra Shareholders Fund (ASX:FSF)
Genesis Energy Ltd (ASX:GNE)
HUB24 Ltd (ASX:HUB)
Lindsay Australia Ltd (ASX:LAU)
Macmahon Holdings Ltd (ASX:MAH)
Monash IVF Group Ltd (ASX:MVF)
Solvar Ltd (ASX:SVR)
TPG Telecom Ltd (ASX:TPG)
Westgold Resources Ltd (ASX:WGX)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.
Disclaimer

The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
Copyright 2024 – Finance News Network