The S&P 500 and Nasdaq witnessed a dip on Thursday following a positive previous session. Investors were closely assessing the last economic datasets in anticipation of the Federal Reserve's meeting. On Wednesday, the Nasdaq achieved a significant milestone by surging past the 20,000 mark for the first time, with the technology rally showing no signs of slowing down. Meanwhile, the S&P 500 closed at its highest level in nearly a week after an in-line inflation reading, which led to a 25 basis point cut by the Fed at its December 17-18 meeting.
Inflation and Unemployment Data: A Mixed Picture
Data revealed that U.S. producer prices rose more than expected in November, driven by a surge in food costs. However, there was a moderation in the prices of services, offering hope that the disinflationary trend would continue. Thomas Martin, senior portfolio manager at Globalt Investments, stated, "Those numbers are a little bit hotter than expectations and (are) on the heels of CPI. (The Fed) is going to (cut rates) because it wants to stay on that path and would like to have rates be lower, but there’s this risk about inflation."Separately, the number of Americans filing new applications for unemployment benefits unexpectedly rose to 242,000 for the week ended December 7, exceeding estimates of 220,000. Trader bets on a rate cut next week stand at over 98%, according to CME's FedWatch Tool. These bets increased after a jobs report on Friday showed unemployment rising last month despite a surge in job growth. However, there are also expectations of a pause in January after several Fed officials urged caution over the pace of monetary policy easing due to the economy's resilience.Market Index Performance
At 9:37 a.m. ET, the Dow Jones Industrial Average rose 40.06 points, or 0.09%, to 44,188.62. The S&P 500 lost 15.55 points, or 0.26%, to 6,068.64, and the Nasdaq Composite lost 95.17 points, or 0.48%, to 19,939.73. Seven of the 11 major S&P sub-sectors were trading lower, with information technology leading the losses, down 0.6%. Most megacap and growth stocks trended lower in the early trading session, with Nvidia (NASDAQ:NVDA) down over 1%.This year, Wall Street's main indexes have set new record highs multiple times, thanks to a rally driven by heavyweight tech stocks that have capitalized on the euphoria around artificial intelligence and the Fed's interest rate cuts. U.S. equities had a remarkable November following Donald Trump's victory in the presidential election, with business-friendly policies adding to corporate profits. December has also started on a generally positive note.Notable Company Movements
Among significant movers, Adobe (NASDAQ:ADBE) slid 11.2% after the Photoshop maker forecast fiscal 2025 revenue below Wall Street expectations on Wednesday. Nordson (NASDAQ:NDSN) lost 3.6% as the dispensing equipment maker forecast fiscal 2025 revenue below Wall Street estimates. Centene (NYSE:CNC) gained 1.4% following the health insurer's forecast of its 2025 profit above estimates.On the NYSE, declining issues outnumbered advancers by a 1.62-to-1 ratio, and on the Nasdaq, the ratio was 1.4-to-1. The S&P 500 posted five new 52-week highs and three new lows, while the Nasdaq Composite recorded 23 new highs and 44 new lows.
