Investing.com — US stocks were slightly lower Thursday as Treasury yields climbed following a hotter-than-expected inflation report.
At 1:02 p.m. ET (18:02 GMT), the fell 93 points, or 0.2%, the index slipped 0.2%, and the dropped 0.2%.
Wall Street slightly after the tech-heavy closed above 20,000 for the first time on Wednesday, with technology stocks rallying sharply on the prospect of lower rates in the near term.
PPI data comes in higher than expected
data, released on Wednesday, came in largely in line with expectations, quelling some concerns that it would overshoot estimates.
But producer prices rose more than expected in November, rising 0.4% last month after an upwardly revised 0.3% increase in October, ahead of the expected 0.2% gain.
In the 12 months through November, the PPI shot up 3.0% after increasing 2.6% in October.
While the upside surprise in the PPI report isn’t expected to derail expectations for a third Fed rate cut at the central bank’s next week’s meeting, it “reinforces the notion of waning disinflationary improvement, and further underscores the need for a patient approach to 2025 monetary policy,” Stifel said in a Thursday note.
Adobe disappoints with sales guidance; ServiceTitan jumps on Nasdaq debut
Adobe Systems Incorporated (NASDAQ:) stock slumped over 12% after the software giant issued a disappointing annual sales outlook, indicating that the company’s recent measures to incorporate artificial intelligence into its offerings were taking longer than expected to generate returns.
Adobe, known for its software for creative professionals, has ramped up its investments in AI amid increased competition from smaller players, whose image generating software is expected to eat into Adobe’s market share.
Chewy (NYSE: stock fell nearly 1% after the top stakeholder of the pet products retailer announced plans to sell $500 million worth of stock.
Warner Bros Discovery Inc (NASDAQ:) detailed plans to split its cable TV business from its streaming and studio units, sending its shares more than 14% higher to a 52-week high.
ServiceTitan Inc (NASDAQ:), meanwhile, jumped more than 40% on its Nasdaq debut after the cloud software provider priced its $625 million initial public offering at $71.
(Peter Nurse, Ambar Warrick contributed to this article.)
