Wall Street Choppy Amid PPI Data and Moderna Slump
Wall Street saw mixed trading as higher-than-expected producer prices kept a 25-basis point rate cut by the Fed in focus. Moderna's shares plummeted due to a poor revenue forecast, and unemployment claims aligned with forecasts. The Dow Jones fell, while the S&P 500 and Nasdaq gained.
Wall Street's primary indexes experienced a volatile trading session on Thursday, influenced by higher-than-expected producer price data, which maintained the possibility of a smaller 25-basis point rate cut by the Federal Reserve, while Moderna faced significant declines due to an unfortunate revenue forecast.
The producer price index for final demand increased by 0.2% in August against a forecasted 0.1%. The core PPI, excluding volatile food and energy prices, also rose by 0.3%, exceeding expectations. Concurrently, initial state unemployment claims were consistent with estimates at 230,000 for the week ending September 7.
Chris Larkin from E*TRADE indicated that these economic indicators cleared the path for the Fed to consider a rate-cutting cycle. Moderna saw its shares plummet 16.8%, marking the lowest since November, following a sales forecast below analysts' estimates. The Dow dropped slightly, while the S&P 500 and Nasdaq showed gains. The S&P 500 sectors, notably communication services and energy stocks, trended higher, and small-cap Russell 2000 outperformed with a 0.9% rise.
(With inputs from agencies.)
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