Highlights
Equities sagged Thursday amid profit-taking pressure and rising bond yields. The Dow industrials and the S&P 500 both declined 0.5 percent and the Nasdaq was off 0.7 percent. The dollar rose while oil prices dipped.
A somewhat hotter than expected producer price report, which suggested inflation was headed in the wrong direction, tended to push yields higher. At the same time, a weaker than expected weekly jobless claims report tended to bolster the view that the Fed is due to deliver a 25 basis point rate cut next week.
Disappointing guidance from Adobe dampened technology shares, and megacaps generally had a soft day after recent gains to dampen the major averages. Among sectors, worst performers included technology, communications services, consumer discretionary and industrials. Holding up best were consumer staples.
A somewhat hotter than expected producer price report, which suggested inflation was headed in the wrong direction, tended to push yields higher. At the same time, a weaker than expected weekly jobless claims report tended to bolster the view that the Fed is due to deliver a 25 basis point rate cut next week.
Disappointing guidance from Adobe dampened technology shares, and megacaps generally had a soft day after recent gains to dampen the major averages. Among sectors, worst performers included technology, communications services, consumer discretionary and industrials. Holding up best were consumer staples.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
