US benchmark equity indexes experienced declines intraday following official data that indicated producer prices increased beyond Wall Street's expectations in November. The Dow Jones Industrial Average was down 0.3% at 44,029.7 after midday Thursday, while the S&P 500 and the Nasdaq Composite each fell 0.2% to 6,071.4 and 19,995.7, respectively.
Among sectors, health care witnessed the sharpest decline, while consumer staples led the gainers. In economic news, the US producer price index rose more than analysts anticipated last month as wholesale costs surged, especially in the food component, as reported by the Bureau of Labor Statistics.
Compared to the previous year, producer prices increased by 3% in November, surpassing the expected gain of 2.6%. While the headline PPI was a positive surprise, the details within the report suggest another 25-basis-point rate cut by the Federal Reserve next week, according to Oxford Economics. On Wednesday, the BLS had reported that US consumer inflation rose in accordance with market estimates last month, both on a sequential and yearly basis. Weekly applications for unemployment insurance unexpectedly rose, and continuing claims exceeded projections, the US Department of Labor indicated on Thursday. The US 10-year yield increased by 4.1 basis points to 4.31% intraday, while the two-year rate climbed 1.7 points to 4.17%. In company news, Adobe ($ADBE) shares dropped 13%, marking the worst performance on the S&P 500 and the Nasdaq.
Late Wednesday, the software maker announced its fiscal fourth-quarter results, which surpassed market expectations; however, its outlook for 2025 disappointed investors. Nordson ($NDSN) also faced challenges, being the second-worst performer on the S&P 500 intraday Thursday with a decline of 9.2%.
The precision technology company released a gloomy fiscal first-quarter outlook late Wednesday, despite reporting results that exceeded market projections in the preceding three-month period. Warner Bros. Discovery ($WBD) unveiled a new corporate structure on Thursday aimed at unlocking additional shareholder value amid an evolving media landscape.
Shares of the media and entertainment giant soared nearly 16%, making it the top gainer on the S&P 500 and the Nasdaq. Broadcom ($AVGO), Costco Wholesale ($COST), and RH ($RH) are among the companies expected to release their latest quarterly financial results after Thursday's closing bell. West Texas Intermediate crude oil saw a slight uptick of 0.1%, trading at $70.37 a barrel intraday. The International Energy Agency raised its 2025 global oil demand forecast, asserting that the market is projected to remain comfortably supplied despite a recent decision by major oil-producing nations to extend output cuts. In contrast, on Wednesday, the Organization of the Petroleum Exporting Countries reduced its 2024 and 2025 global oil demand projections for the fifth consecutive month. Gold prices fell by 1.7%, landing at $2,709.60 per troy ounce, while silver plummeted by 3.9% to $31.69 per ounce..