Home Economy News Wall St slips as traders assess data; chip stocks slide

Wall St slips as traders assess data; chip stocks slide


Wall St slips as traders assess data; chip stocks slide By Reuters

Breaking News



Published Mar 14, 2024 07:32AM ET
Updated Mar 14, 2024 10:21AM ET

© Reuters. Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., March 7, 2024. REUTERS/Brendan McDermid

By Bansari Mayur Kamdar and Shashwat Chauhan

(Reuters) – Wall Street’s main stock indexes were on track to a higher opening on Thursday as investors kept bets of interest-rate cuts in the coming months alive despite slightly hotter-than-expected inflation data.

A Labor Department report showed the Producer Price Index (PPI) rose 0.6% month-on-month in February, compared with a 0.3% increase expected by economists polled by Reuters.

It rose 1.6% in the 12 months to February, versus an estimated growth of 1.1%.

U.S. retail sales rose 0.6% month-on-month in February, compared to an estimated 0.8% increase, a separate report from the Commerce Department showed.

“The retail sales was slightly weaker, so it’s taking the edge off of the PPI number,” said Andre Bakhos, managing member at Ingenium Analytics.

The PPI number was not in line with the perception that the Fed will cut rates, Bakhos said.

However, the hotter-than-expected producer prices and weaker-than-expected consumer spending did little to budge financial market bets on a June start to the Federal Reserve’s interest-rate cuts, based on futures contract prices that settle to the U.S. central bank’s policy rate.

Meanwhile, the number of Americans filing for unemployment claims stood at 209,000 for the week ended March 9, compared to an estimated 218,000 claims, according to another Labor Department report.

The slew of economic data comes ahead of the Fed’s policy meeting next week, where the focus will be on possible cues about how soon the central bank could kick off the rate-easing cycle.

At 08:45 a.m. ET, Dow e-minis were up 153 points, or 0.39%, S&P 500 e-minis were up 13.5 points, or 0.26% and Nasdaq 100 e-minis were up 48.75 points, or 0.27%.

The tech-heavy Nasdaq and the S&P 500 closed lower on Wednesday, as investors booked profits from high-flying chip stocks ahead of the key economic data.

Most megacap growth and technology stocks inched higher in premarket trading, but artificial intelligence (AI) giant Nvidia (NASDAQ:NVDA) fell 1.7%.

Shares of Robinhood (NASDAQ:HOOD) Markets jumped 11.5% after the trading app operator said its assets under custody rose 16% in February.

Citigroup added 2.0% after Goldman Sachs raised the lender’s rating to “buy” from “neutral”.

SentinelOne (NYSE:S) eased 6.6% after the cybersecurity firm forecast FY25 revenue below analysts’ expectations.

Aerospace and defense company RTX gained 1.9% after Wells Fargo upgraded its rating to “overweight” from “equal weight”.

Wall St slips as traders assess data; chip stocks slide

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News