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Stock market today: Dow falls a second day while tech stocks shake off inflation

Published 09/13/2023, 04:05 PM
© Reuters.

Investing.com -- Stocks lost their earlier upward momentum after August's inflation report came in mostly at expectations, stoking hopes the Federal Reserve is reaching the end of its interest rate increases.

At 16:01 ET (20:01 GMT), the Dow Jones Industrial Average closed down 70 points or 0.2% while the S&P 500 ended higher by 0.1% and the NASDAQ Composite was up 0.3%.

The three major Wall Street indices were weighed down on Tuesday by sharp losses from Oracle (NYSE:ORCL). The computer software company notched its worst day in more than 20 years on the back of disappointing revenue guidance. For the Dow, Wednesday's fall was its second in a row.

U.S. CPI data hits ahead of Fed meeting 

The focus Wednesday was the U.S. consumer price index, which investors are using gauge the likely path of U.S. interest rates over the rest of the year.

The annual headline inflation in the world's largest economy rose 3.7%, slightly higher than the expected 3.6% during the month of August, as energy prices soared, but the core reading, which strips out volatile items like food and fuel, rose 4.3%, as expected. 

Thursday will bring readings on producer prices and retail sales.

Recent remarks from Fed officials suggest another pause is the most likely outcome of next week's rate-setting meeting, but uncertainty still remains over what they may choose to do later on in 2023.

Apple to remain in spotlight after iPhone reveal

In the corporate sector, Moderna (NASDAQ:MRNA) and Pfizer (NYSE:PFE) are likely to benefit from the Centers for Disease Control and Prevention’s recommendation that all Americans ages six months and older receive updated Covid vaccines from the two drugmakers. Moderna shares were up 3.1%, while Pfizer was down 0.2%.

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Apple (NASDAQ:AAPL) will also remain in focus after the tech giant revealed four new iPhone models at its annual hardware refresher on Tuesday, but refrained from launching major updates to the flagship device's design or software. Shares closed flat.

Investors were also awaiting the pricing of Arm Holdings' initial public offering, which could be the biggest of the year to date. The SoftBank-owned chip designer is aiming to start trading in New York on Thursday.

Crude gains ahead of EIA inventory report

Oil prices edged higher Wednesday, near their highest levels since November 2022, boosted by ongoing supply concerns as well as a bullish demand outlook from the OPEC monthly report.

The Organization of the Petroleum Exporting Countries, in a report released on Tuesday, said that oil markets will tighten further this year amid robust demand and lower production.

Additionally, the Energy Information Administration said global oil inventories were expected to fall by almost a half million barrels per day in the second half of 2023.

This overshadowed data from the American Petroleum Institute showing that U.S. crude inventories rose 1.2 million barrels last week.

 

Latest comments

It is a pickers market. Take some money off the table. I buy in 100-200 share blocks minimum and it works as I am sellling a few half blocks, ie 100 shares.
So rising inflation means the Fed will pause? With the endless printing to finance the deficit the Fed will be forced to raise rates at least 2 more times, possibly 3.
US money supply and Fed Reserve balance sheet both have been in downtrend since mid-2022.  US budget deficit has been in downtrend since mid-2020.  Stop spreading b s.
Consumer spending is a key driver of economic growth.
Consumer spending is a key driver of economic growth.
Well, then, I guess if we all just avoid buying things like food and fuel, then we won't feel the bite of inflation quite as much. Here's a better idea, elect officials who are fiscally responsible. In other words, liberals, elect someone who's nothing like you.
here's a better idea: Enforce antitrust laws so that greedy corporations can't continue to gouge consumers. Capitalism without competition is extortion.
Republicans are NOT fiscally responsible.  They only pretend to be when not in power, to collapse the economy so they can blame everything on the Dems and regain power.  The last two times the US had budget Federal surpluses were under Dem potuses.  The Two Santa Claus Theory published by Jude Wanniski in 1976 hints at that.
  "Capitalism without competition is" not really capitalism.
Does anyone remember disinflation? Probably not. It was transitory.
Dang, I wish the market was open longer today so that I could buy more high P/E stocks while inflation is out of control and interest rates are going up!
Volatile food prices??? Over the decades, food prices have pretty much gone up and never go down.
That's true for non-food items, too, and for over centuries.
"non-food items" include salaries.
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