4.05pm: Disappointing Disney results weigh on the Dow
US stocks finished the trading session mixed as tech equities rebounded somewhat from yesterday’s inflation-feared selloff.
At the close, the Dow slipped 159 points to 35,921, while the S&P 500 gained 3 points at 4,649 and the tech-heavy Nasdaq added 82 points at 15,704.
Notable movers to the downside included shares of The Walt Disney Company, which fell more than 6% after the entertainment giant reported financial results that missed estimates and also saw its Disney+ subscriber growth fall short of forecasts.
12:10pm: US equities mixed midday after sell-off
US stocks were mixed midday Thursday a day after inflation data and surging bond yields sparked a sell-off in technology stocks.
Wednesday’s inflation report showed the consumer price index, which tracks a basket of products ranging from gasoline and health care to groceries and rents, rose 6.2% in October from a year ago, hitting its highest level in three decades.
So far, Nvidia and AMD each added more than 2%. Big Tech stocks like Facebook-parent Meta and Google-parent Alphabet both rose.
As of noon, the Dow Jones Industrial Average was down 71 points, or 0.20%, to 36,009. The S&P 500 rose 8 points, or 0.17%, to 4,645.
The tech-heavy Nasdaq increased 109 points, or 0.70%, to stand at 15,732.
Joshua Mahony, senior market analyst at online trading group IG, said investors think the Fed won’t be changing course in the face of rising inflation.
“US tech names are leading the push back after a decline in American stocks in the wake of yet another unwelcome rise in CPI inflation,” he said. “While the Federal Reserve will be aware of the risk posed by rapidly increasing consumer prices, today’s gains highlight the feeling that we are unlikely to see them change tact anytime soon.”
The biggest gainer on the day so far is EVgo Inc, up 21% to $18.52 a share.
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9.48am: US stocks make mixed start
US benchmarks started mainly higher Thursday although the Dow Jones lagged and was volatile as traders continue to mull over yesterday's report showing rising consumer inflation.
In early deals in New York, the Dow Jones Industrial Average shed around 68 points at 36,011. The S&P 500 advanced around eight points at 4,655. The technology-laden Nasdaq index added over 99 points at 15,722.
"It could be that we might see US shares decline after the cash markets open for trading later," said Fawad Razaqzada, market analyst at ThinkMarkets.com.
"But if they don’t and judging by the stock market reaction in today’s first half of the session, it would suggest investors are not too convinced the Fed will change course at its next policy meeting in December, even though inflation signals have really tested the central bank’s ‘transitory’ term with CPI sitting around a three-decade high at 6.2% year-over-year.
"The market may perhaps give the Fed that extra bit of doubt just in case we might have seen peak inflation. Until the FOMC’s next meeting on December 15, we will get the latest wages data in the November jobs report, as well further inflation prints in the form of October CPI and PCE Price Index," he added.
"There is a possibility that these indicators might provide the first signs that price pressures are going to start weakening from here."
6.30am: US stocks seen opening higher
US stocks are expected to open higher on Thursday recovering a tad after worse-than-expected consumer inflation data for October sent stocks tumbling in the previous session.
Futures for the Dow Jones Industrial Average rose 0.12% in Thursday pre-market trading, while the broader S&P 500 index gained 0.34% and those for the tech-heavy Nasdaq 100 added 0.59%.
Stocks closed lower on Wednesday after October’s consumer price index (CPI) reading showed the biggest annual jump in more than 30 years, triggering a spike in bond yields.
The CPI jumped 6.2% from a year ago, well above the 5.9% estimate. The yield on the benchmark 10-year Treasury, which had trended lower in recent weeks, jumped by about 11 basis points.
On the day, the Dow Jones fell by 240 points, or 0.66%, to 36,079 and the S&P 500 dropped 0.82% to 4,646, while the Nasdaq Composite declined 1.66% to 15,622.
“The jump in US inflation, and the yields soured the mood in the equity markets,” commented Ipek Ozkardeskaya, senior analyst at Swissquote. “Nasdaq of course paid the highest price among the three major US indices. The tech-heavy index lost 1.66% as it is plenty of the so-called growth companies who need the rates to stay as low as possible to grow faster.
"But overall, compared to the inflation shock, it’s not a dramatic decline. And activity in US equity futures was positive in Asia, Nasdaq futures are up 0.22% at the time of writing, hinting that the moodiness in the market will likely be transitory, unlike inflation.”