New York, USA – Dow Jones futures and other stock indexes saw gains diminish on Thursday following the release of producer price index data indicating higher-than-expected inflation. This led to a decline in the stock market for prominent companies such as Nvidia and Tesla.
In morning action, Dow Jones futures rose by 0.3% versus fair value, while S&P 500 futures gained 0.2%. Nasdaq 100 futures, heavily focused on technology, climbed 0.2% before the opening bell.
Meanwhile, Invesco QQQ Trust ETF, tracking the Nasdaq 100, and the SPDR S&P 500 ETF both saw increases of 0.2% each among U.S. exchange-traded funds.
The 10-year Treasury yield rose to 4.22%, and oil prices also increased, with West Texas Intermediate futures rising nearly 1% to around $80.45 per barrel.
Shares of Nvidia and Tesla experienced losses, falling 1.9% and 1.5% respectively during premarket trading on Thursday. Nvidia had previously lost 1.1% the day before, while Tesla saw a 4.5% decline following a Wells Fargo downgrade.
The Labor Department reported that the producer price index rose by 0.6% in February, with a 1.6% annual increase, surpassing expectations. Additionally, core producer prices, excluding food and energy, climbed by 0.3% for the month, with a 2% annual increase.
In other news, key companies such as Dick’s Sporting Goods, Dollar General, Lennar, SentinelOne, and UiPath were among the notable movers in the market.
On Wednesday, the Dow Jones Industrial Average rose by 0.1%, while the S&P 500 saw a slight decline of 0.2%. The Nasdaq composite, heavily focused on technology, experienced a 0.5% decrease.
Amid a changing market landscape, investors are advised to read up on IBD’s new exposure levels to adjust to market conditions in a timely manner.
In the world of Dow Jones stocks, leaders like Apple and Microsoft were trading higher ahead of Thursday’s market open. Apple stocks were up by 0.7%, while Microsoft saw a 0.9% increase, finding support at the 50-day line within an advantageous buy area.
These developments indicate ongoing fluctuations in the stock market, signaling a need for investors to stay informed and adaptable in their strategies.