During Thursday's trading session, stocks initially faced downward pressure but managed to recover some losses as the day progressed. Although the major indices have rebounded from their lowest points, they remain slightly in the red.
As it stands, the major indices are experiencing mild declines. The Dow has decreased by 31.21 points, or 0.1%, to 44,117.35; the Nasdaq is down by 40.63 points, or 0.2%, to 19,994.26; and the S&P 500 has fallen by 7.81 points, or 0.1%, to 6,076.38.
The initial downturn in Wall Street was partially driven by traders seeking to capitalize on the robust performance observed on Wednesday, when the tech-dominated Nasdaq reached the landmark of closing above 20,000 for the first time.
Additionally, a sense of caution emerged following a Labor Department report indicating that U.S. producer prices rose more than anticipated in November. Specifically, the department reported a 0.4% climb in its producer price index for final demand, surpassing the upwardly revised 0.3% increase in October. Analysts had expected a modest 0.2% rise, in line with previous estimates.
The report further highlighted an acceleration in the annual growth rate of producer prices to 3.0% in November from an upwardly revised 2.6% in October, exceeding the anticipated rise to 2.6% from the prior month's originally reported 2.4%.
Despite initial selling pressure, it subsided throughout the session as economists suggested that the recent data is unlikely to deter the Federal Reserve from proceeding with a quarter-point reduction in interest rates next week. The CME Group's FedWatch Tool currently reflects a 98.1% probability that the Fed will cut rates by 25 basis points at its December meeting.
**Sector Analysis**
Gold stocks have undergone a substantial pullback following Wednesday’s surge, causing the NYSE Arca Gold Bugs Index to dip by 2.7%, after previously reaching its highest close in over a month. This decline correlates with a sharp drop in the price of gold, which for February delivery, tumbled $55.40 to $2,701.30 per ounce.
Steel stocks also exhibit notable weakness, evidenced by a 2.6% decline in the NYSE Arca Steel Index. Additionally, energy stocks have faced significant pressure amid a notable decline in crude oil prices, whereas sectors like networking and commercial real estate are showing signs of strength.
**Global Markets**
Globally, stock markets across the Asia-Pacific region mostly experienced gains on Thursday. Japan's Nikkei 225 Index increased by 1.2%, while China's Shanghai Composite Index rose by 0.9%.
In Europe, the main markets displayed modest strength following the European Central Bank's decision to cut interest rates by a quarter point. The U.K.'s FTSE 100 Index, France's CAC 40 Index, and Germany's DAX Index each recorded a 0.1% increase.
In the bond markets, Treasury yields continued their upward trend from recent sessions. Consequently, the yield on the benchmark ten-year note has risen by 2.3 basis points to 4.294%.
The material has been provided by InstaForex Company -
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