U.S. benchmark equity indexes finished lower on Thursday as traders processed comments from Federal Reserve Chair Jerome Powell, along with the latest producer price data. The S&P 500 dropped by 0.6%, settling at 5,949.2, while the Nasdaq Composite also fell 0.6% to 19,107.7. The Dow Jones Industrial Average recorded a 0.5% loss, ending at 43,750.9.
The industrials sector experienced the largest decline, whereas only energy and technology sectors managed to record gains. Powell indicated that the U.S. economy is 'not sending any signals that we need to be in a hurry' to ease monetary policy. He stated, 'The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.' He added, 'Ultimately, the path of the policy rate will depend on how the incoming data and the economic outlook evolve.' Fed Governor Adriana Kugler mentioned that disinflation in the U.S.
has slowed, with 'stubborn' housing inflation and price pressures in other categories potentially stalling progress towards price stability. Recently, the Federal Open Market Committee lowered its benchmark lending rate by 25 basis points after a 50-basis-point reduction in September. In relation to yields, the U.S.
two-year yield experienced a rise of 6.9 basis points, reaching 4.35% on Thursday, while the 10-year rate remained relatively unchanged at 4.45%. Economic data revealed that producer price growth in October accelerated compared to September, as reported by the Bureau of Labor Statistics. Additionally, U.S.
consumer inflation showed an increase last month consistent with market expectations. The probability of the FOMC opting to lower interest rates by 25 basis points next month fell to 62%, down from 83% the previous day, as indicated by the CME FedWatch tool; conversely, the chances of rates staying unchanged increased to 38%.
In terms of unemployment, weekly applications for unemployment insurance hit their lowest level since May, with a reduction in continuing claims as per U.S. government data. In the commodity market, West Texas Intermediate crude oil increased by 0.2% to $68.58 a barrel. U.S. commercial crude stockpiles saw a more-than-anticipated increase last week.
The International Energy Agency revised its 2024 global oil demand outlook upward, citing a rebound in consumption among advanced economies during Q3. However, the Organization of the Petroleum Exporting Countries cut its global oil demand projections for both 2024 and 2025 for the fourth consecutive month.
In corporate news, shares of Super Micro Computer ($SMCI) experienced an 11% slump, marking the steepest decline on the Nasdaq and the second-largest drop on the S&P. The artificial intelligence server manufacturer announced it would not be able to file its quarterly report punctually for the period ending September 30.
Shares for electric vehicle manufacturer Tesla ($TSLA) decreased by 5.8%, marking the second-largest decline on the Nasdaq. Conversely, Walt Disney's ($DIS) fiscal Q4 results surpassed market predictions, bolstered by the streaming division, which led the media giant to anticipate adjusted earnings growth for fiscal 2025.
Disney shares surged 6.2%, the largest gain on the Dow and among the most significant increases on the S&P. Tapestry ($TPR) decided to terminate its proposed acquisition of Capri Holdings ($CPRI), the parent company of Michael Kors and Versace, due to uncertainties surrounding regulatory approvals. Tapestry's shares rose by 13%, the largest gain on the S&P 500, while Capri's shares advanced by 4.4%.
In the precious metals market, gold fell by 0.5%, reaching $2,574.60 per troy ounce, while silver saw a slight decrease of 0.1%, priced at $30.62 per ounce..