President-elect Donald Trump rang the opening bell on Thursday morning as tech stocks edged lower after fresh inflation data cast doubt on investor confidence for the path of interest rates ahead.
The Dow Jones Industrial Average (^DJI) hugged the flat line, while the S&P 500 (^GSPC) slipped roughly 0.1 per cent. The techheavy Nasdaq Composite (^IXIC) fell nearly 0.2 per cent as shares of Nvidia (NVDA) slipped.
Meanwhile bitcoin (BTC-USD) climbed above $102,000 as Trump’s appearance at the bell balcony of the New York Stock Exchange reminded investors of cryptofriendly policies expected under his incoming administration.
The market received another piece of the inflation puzzle on Thursday — an update on whole – sale prices — after the latest consumer inflation data invigorated stocks on Wednesday, lifting the Nasdaq above 20,000 for the first time.
The in-line consumer price index reading cleared one of the last remaining risks to easing by the Fed in December. That boosted bets on a quarter-point rate cut in December to a near 99 per cent chance, per the CME FedWatch tool.
But the November producer price index released on Thursday morning came in hotter than expected, rising 0.4 per cent from the previous month.
Economists had been expecting an increase of 0.2 per cent. That has put the chances of the Fed holding rates steady in January in focus, as several officials have voiced a cautious stance on policy.
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