Stocks Slip as Inflation and Jobless Claims Stir Economic Concerns

U.S. stock indexes fell on Thursday amid unexpected inflation and jobless claim figures. The Consumer Price Index increased by 0.2% monthly, with a 3.3% core rise year-over-year. Investors are uncertain about interest rate decisions, with energy sectors gaining due to rising oil prices and upcoming earnings reports.

Wall Street's primary indexes took a hit on Thursday as investors reacted to unexpected rises in inflation and unemployment claims, raising doubts about the stability of the U.S. economy and future interest rates. The Consumer Price Index showed an increase of 0.2% monthly and 2.4% annually, both exceeding economist predictions.

The core inflation figure, which removes food and energy costs, marked a 3.3% year-over-year rise, slightly above the 3.2% forecast. Meanwhile, jobless claims surged to 258,000, surpassing the expected 230,000. This combination of declining economic health and persistent inflation left investors wary, signaling an 80% chance of a November rate cut.

Despite these economic challenges, the energy sector outperformed others as oil prices climbed due to increased U.S. fuel consumption and concerns over Middle Eastern supply disruptions. Wall Street is also bracing for third-quarter earnings reports, particularly from major banks. Delta Air Lines and Pfizer stocks dipped amid revenue concerns and activist investor actions, respectively.

(With inputs from agencies.)