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Investing.com – Wall Street’s main indexes fell during these moments of trading, Thursday, as yields rose after data showed consumer prices rose more than expected in September, despite the decline in underlying price pressures.
The Labor Department report showed US consumer prices rose 0.4% in September, versus estimates of a 0.3% rise. While prices rose to 3.7% versus estimates of 3.6% on an annual basis.
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The core CPI, which excludes volatile food and energy prices, rose 0.3%, in line with estimates.
As the dollar and US bonds rose after the inflation data, gold turned lower during the past few moments.
“The headline inflation data always gets the most attention, but it’s important to look at the substance because that’s what the Fed uses to make any decisions,” said Art Hogan, chief market strategist at B Riley Wealth.
“The Fed will find itself constrained by the first half of next year, and its next step will likely be to gradually lower interest rates into the second half,” Hogan added.
On the other hand, another set of data showed that unemployment claims rose by 209,000 for the week ending October 7, less than estimates of a rise of 210,000.
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Benchmark 10-year US Treasury yields rose to 4.638% after falling for two straight days.
Boston Federal Reserve Bank President Susan Collins said on Wednesday that while the odds of the economy escaping recession have grown, the central bank is likely not finished raising interest rates with the aim of bringing inflation back to its target.
Comments from other Fed policymakers, including Atlanta’s Raphael Bostic, are also expected on Thursday.
Minutes from the Fed’s Sept. 19-20 meeting showed a growing sense of uncertainty about the path of the U.S. economy, with volatile data and tightening financial markets posing risks to growth.
Meanwhile, it said there would be no humanitarian exceptions to its blockade of the Gaza Strip until all its hostages are released.
Kan public radio said the Israeli death toll had risen to more than 1,300, while Gaza authorities said 1,354 Palestinians were killed and more than 6,000 wounded in retaliatory bombings.
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Wall Street Now
It fell by 0.28%, while the S&P 500 fell by 0.24%. On the other hand, it rose 0.18%.
Real Estate ( ) and Consumer Staples ( ) were among the hardest-hit S&P 500 sectors, while Energy ( ) was the biggest gainer.
Fastenal Inc. (NASDAQ:) rose 5% after the industrial supplies company beat estimates.
While Lucid Motors (NASDAQ:) stock fell by 2.14%, and Tesla (NASDAQ:) stock fell by 0.16%.
Markets now
It is now falling by 0.15% to $1,884 an ounce.
It fell by 0.12% to $1872 per ounce.
On the other hand, it rose by 0.5% to 106.112 points.
It rose by 1.5% to $87.1 per barrel, after the release of US oil inventory data. While Texas crude also rose by 1.4% to $84.6 per barrel.
2023-10-12 15:16:00
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