US benchmark equity indexes experienced a downturn ahead of Thursday's close, triggered by official data revealing that producer prices surged beyond Wall Street's expectations in November. The Nasdaq Composite decreased by 0.5% to reach 19,927.6, while the Dow Jones Industrial Average and the S&P 500 each dropped by 0.3%, settling at 43,968.7 and 6,059.4, respectively.
Among the sectors, consumer discretionary and health care recorded the most significant declines, whereas consumer staples led the positive movements. The US producer price index rose more than anticipated last month as wholesale costs of goods increased, primarily driven by a spike in food prices, as reported by the Bureau of Labor Statistics (BLS).
Year-over-year, producer prices climbed by 3% in November, surpassing the expected gain of 2.6% from analysts. On Wednesday, the BLS indicated that US consumer inflation accelerated in line with market estimates last month, both on a sequential and annual basis. In the bond market, the US 10-year yield increased by 5.9 basis points to 4.33%, while the two-year rate rose 3.4 points to reach 4.19%. Companies such as Broadcom, Costco Wholesale, and RH are poised to disclose their latest quarterly financial results following the closing bell. Meanwhile, West Texas Intermediate crude oil prices remained relatively steady at $70.26 a barrel..