U.S. stocks slip modestly as inflation data shows slight miss and bond yields rise
Wall Street indices edged lower on Wednesday after inflation came in at 3.7% versus the 3.6% forecast, while earnings from companies such as Abercrombie & Fitch and J.M. Smucker lifted their shares.
U.S. equity markets posted small declines on Wednesday following a consumer-price report that showed inflation at 3.7% last month, a touch above the 3.6% economists had expected. The S&P 500 fell 0.02% to 7,675.70 points, the Dow Jones Industrial Average dropped 0.2% to 53,463.88, and the Nasdaq Composite slipped 0.1% to 26,130.20.
The modest moves came ahead of the release of Nvidia’s earnings, which were announced after the market closed. The chip maker has driven much of the recent rally in AI-related stocks, though analysts note concerns that valuations may be stretched and demand could soften.
Abercrombie & Fitch shares jumped 35.7% after the retailer posted quarterly profit above expectations and raised its full-year earnings and share-repurchase guidance. J.M. Smucker rose 4.3% on similarly upbeat results and an upgraded profit outlook. In contrast, Intuit fell 3.2% despite beating profit estimates, as its forecast for fiscal-year earnings growth missed analysts’ expectations.
Meta Platforms added 1.1% after agreeing to a settlement of up to $18 billion and new child-safety measures for Facebook and Instagram, ending a high-profile trial over teen social-media use.
In the bond market, Treasury yields edged higher, with the 10-year yield moving to 4.65% from 4.64% the previous day. Traders largely maintained expectations that the Federal Reserve will raise rates at least once before year-end, according to CME Group data.
Oil prices fluctuated amid uncertainty over the Iran-related shipping situation, with Brent crude settling at $86.94 a barrel, down 0.4% from the prior session.
Internationally, equity indexes rose in Europe and Asia, led by gains in South Korea’s Kospi and Japan’s Nikkei 225.