On Thursday, US equity indexes experienced a decline during midday trading, influenced by a rise in wholesale price inflation. The S&P 500 and the Dow Jones Industrial Average both saw a decrease of 0.3%, landing at 5,969.1 and 43,821, respectively. Meanwhile, the Nasdaq Composite fell by 0.2%, closing at 19,198.4.
The primary areas of weakness were led by industrials and communications services, while consumer staples and technology sectors managed to post gains. In the latest economic report, the US Producer Price Index (PPI) increased by 0.2% in October, a faster rate compared to the 0.1% rise in September, as per data compiled by Bloomberg.
When excluding food and energy prices, the core PPI rose by 0.3%, surpassing the expected 0.2% gain and following a 0.2% increase in the previous month. Year-over-year in October, the PPI saw a 2.4% increase, while core PPI escalated by 3.1%, which exceeds the September rates of 1.9% and 2.9%, respectively, as reported by the Bureau of Labor Statistics on Thursday. On the Treasury yield front, most US yields showed a decline.
The 10-year yield dipped by 6 basis points to 4.39%, while the two-year yield fell 3.4 basis points to 4.25%. In corporate news, Walt Disney's fiscal Q4 performance outstripped market expectations, buoyed by robust streaming revenues. The media and entertainment powerhouse anticipates adjusted earnings growth for fiscal 2025 year over year.
Shares saw an impressive surge, climbing 7% intraday, marking it as the top-performer on the Dow. Additionally, Tapestry announced it has terminated its planned acquisition of Capri Holdings (Michael Kors and Versace parent company) due to uncertainties surrounding regulatory approvals. Following this news, shares surged over 12%, becoming the most significant gainer on the S&P 500. Conversely, Super Micro Computer faced major declines, falling nearly 11% intraday and emerging as the worst performer on both the S&P 500 and the Nasdaq.
This drop followed the company's earlier announcement that it would not be able to timely file its quarterly report for the period ending September 30, as it requires additional time to finalize financial statements and disclosures. Lastly, West Texas Intermediate crude oil prices saw a minor decrease, settling at $68.41 a barrel..