US benchmark equity indexes experienced a decline ahead of Thursday's close as markets analyzed comments from Federal Reserve Chair Jerome Powell alongside the most recent producer prices data. The Nasdaq Composite dropped 0.7%, settling at 19,098.1, while the S&P 500 decreased by 0.6% to 5,949.6. The Dow Jones Industrial Average fell 0.5% to 43,737.2.
Within the market sectors, industrials recorded the most significant drop, whereas energy emerged as the sole sector showing gains. "The economy is not sending any signals that we need to be in a hurry to lower rates," Powell stated. "The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully." Last week, the Federal Open Market Committee of the central bank reduced rates by 25 basis points, which followed a 50-basis-point cut in September.
Recent reports reveal that US producer price growth accelerated in October, largely influenced by a rebound in wholesale costs of goods, as noted by the Bureau of Labor Statistics. Additional BLS data indicated that US consumer inflation rose in line with market expectations last month. In the bond market, the US 10-year yield fell by 1.8 basis points to 4.43%, while the two-year rate increased by 6.9 basis points to 4.35%. Applied Materials is expected to announce its latest quarterly financial results following the market's closing bell, along with other companies. On the commodities front, West Texas Intermediate crude oil saw an increase of 0.3%, reaching $68.62 a barrel..