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On Thursday, the equities market witnessed a notable opening with stocks trading lower. This comes after the previous session's significant gains. The S&P 500 and Nasdaq showed declines of 0.3% and 0.4% respectively, while the Dow Jones Industrial Average managed a fractional increase just 20 minutes after the opening bell. Wednesday saw a surge in stocks, with technology company shares soaring and pushing the Nasdaq Composite above the 20,000-point mark for the first time.

Early Trading Trends

In early trading on Thursday, large-cap technology stocks generally faced a downward trend. Companies like Nvidia (NVDA), Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN), Meta (META), and Tesla (TSLA) were losing ground. However, Microsoft (MSFT) saw a slight uptick. Additionally, shares of Broadcom (AVGO) dropped nearly 2% ahead of the release of its quarterly earnings report later in the day.

Software Provider's Outlook

Adobe (ADBE) shares took a significant hit, sliding 12% and leading the S&P 500 decliners. This was despite the software provider's quarterly results exceeding analysts' expectations on both the top and bottom lines. The company's disappointing outlook for revenue had a notable impact on its stock price.

Economic Data and Fed Expectations

Investors were closely monitoring a couple of economic data releases this morning. The monthly report on producer prices showed that wholesale inflation last month was higher than economists had anticipated. Weekly jobless claims numbers also came in lower than expected. On Wednesday, consumer price data was released, which matched economists' estimates. This strengthened market expectations that the Fed will cut its benchmark lending rate at its policy meeting next week. However, the data on Thursday morning did not cause these expectations to change. Market participants, according to the CME Group's FedWatch Tool, are pricing in a 98% chance of a quarter-point rate cut next week. The yield on 10-year Treasurys, which is correlated with expectations about interest rate movements, was slightly higher this morning at 4.29%.

Other Asset Movements

Bitcoin remained relatively unchanged at around $101,300. Gold futures saw a significant decline of nearly 2% to $2,705 an ounce. Crude oil futures also experienced a slight decrease.