Key Points:
- U.S. stocks declined following a higher-than-expected rise in wholesale prices in January.
- The U.S. producer price index increased by 0.3%, surpassing economists’ forecasts.
- Rising Treasury yields and concerns about inflationary pressures weighed on equities.
- Investors await further commentary on interest rates from key Federal Reserve officials.
U.S. stocks dipped in early New York trading on Friday following a data release indicating a faster-than-anticipated increase in wholesale prices in January, adding to concerns about inflationary pressures in the world’s largest economy.
As of 11:45 ET, the S&P 500 index is at 5033.07 in the stock market, marking a marginal increase of 0.07%. However, the Nasdaq 100 index (D) experienced a slight decline of 0.24%, settling at 17802.28. Similarly, the Dow 30 index at 38761.14, reflecting a minimal decrease of 0.03%. Despite the mixed performance across these major indices, the overall sentiment appears relatively stable.
NVIDIA Corporation (NVDA) led with a price of $739.80 per share, marking a positive change of 1.82%. Conversely, Super Micro Computer, Inc. (SMCI) experienced a notable decline, trading at $895.00 per share, reflecting a decrease of 10.86%. Tesla, Inc. (TSLA) saw a slight increase of 0.96%, reaching $202.37 per share, while Meta Platforms, Inc. (META) faced a downturn, dropping by 1.95% to $474.60 per share. Advanced Micro Devices, Inc. (AMD) also recorded a slight decrease of 0.41%, trading at $176.03 per share. Coinbase Global, Inc. (COIN) stood out with a significant increase of 15.51%, trading at $191.37 per share.
According to Labor Department figures, the U.S. producer price index (PPI) for January rose by 0.3%, surpassing economists’ expectations of a 0.1% increase. Following a revised decline of 0.1% in December, this uptick contributed to concerns about persistent inflationary pressures.
The release of the PPI data prompted an increase in U.S. Treasury yields, putting downward pressure on equities. Investors have been closely monitoring inflation trends, which have diminished expectations for imminent interest rate cuts by the Federal Reserve. Analysts at ING anticipate more insights from Fed policymakers in the coming days regarding the “bumpy” path toward achieving the central bank’s 2% inflation target.
In corporate news, cryptocurrency exchange Coinbase (NASDAQ: COIN) reported fourth-quarter earnings that surpassed Wall Street estimates, sending its shares higher. Increased activity on the platform, driven by the approval of spot-Bitcoin exchange-traded funds, contributed to the positive performance. Coinbase reported earnings per diluted share of $1.04, exceeding expectations for a loss of $0.01 per share.
Meanwhile, DoorDash (NASDAQ: DASH) shares declined after the delivery company announced a wider-than-expected fourth-quarter loss, partly attributed to elevated labor costs. In contrast, semiconductor equipment maker Applied Materials (NASDAQ: AMAT) saw its shares rise on a positive second-quarter revenue outlook driven by robust demand for advanced chips used in artificial intelligence.
In the currency market, the EUR to USD pair remained stable at 1.07713, while the USD to JPY pair saw a slight increase of 0.25%, reaching 150.264 Japanese Yen. Similarly, the AUD to USD pair rose by 0.20% to 0.65335 USD. The U.S. Dollar index rose marginally by 0.04% in the currency indices, standing at 104.319 USD. Meanwhile, the Euro and Japanese Yen indexes experienced slight declines of -0.01% and -0.22%, respectively.
Crude Oil Futures edged up by 0.35% to $77.86 per barrel, while Brent Crude Futures saw a slight increase of 0.37%, reaching $83.17 per barrel. Henry Hub Natural Gas Futures experienced a significant surge of 3.29%, settling at $1.633 per million British thermal units. Gold Futures showed a modest gain of 0.31%, trading at $2021.1 per ounce.
