US stock market: On account of renewed fear of US Fed rate hike post-rise in US inflation, Wall Street indices witnessed sell off pressure on Friday session. Nasdaq index fell around 0.68 per cent on Friday. On weekly basis, the tech index of the US stock market went down by 2.34 per cent and for the first time in 2023, Nasdaq ended lower on two weeks in a row. S&P 500 index went off 0.11 per cent but in week-on-week terms, the index logged losses to the tune of 0.61 per cent. However, Dow Jones ended higher on Friday by 0.30 per cent while on weekly basis, it ended 0.44 per cent higher.
Top losers of US stock market
Shares of Disney, Boeing, Dow Inc, Nike and Microsoft were among top losers of the US stock market on Friday. Disney share price crashed to the tune of 2.98 per cent and ended at $89.02 per share, Boeing share price nosedived 1.07 per cent and closed at $235.72 per dollar levels. Nike shares corrected 0.86 per cent and ended at $108.09 levels. Microsoft shares dipped 0.59 per cent and closed at $321.01 mark.
On Thursday, Wall Street’s main indexes had finished flat, giving up most early gains on milder-than-feared consumer price inflation data.
Speaking on reason for slide in US stock market, Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute in St Louis said, “We think there’s some reassessment of inflation going on with investors looking further under the hood. Disinflation has been very rapid in the past months at the top level but that may be levelling out here a little.”
Friday’s data suggests the Fed will need to keep rates higher for longer and “it puts additional rate hikes back on the table for this year,” said Christopher who noted that while some people were taking profits in response, others with cash on the table were stepping in to buy the dip.
The US producer price index (PPI) for final demand rose 0.3 per cent in July, according to the Labor Department. This compared with economist expectations for 0.2 per cent. And in the 12 months through July, the PPI rose 0.8 per cent against estimates for a 0.7 per cent advance. However, data for June was revised lower to show the PPI unchanged instead of nudging up by the previously reported 0.1 per cent.
(With inputs from Reuters)
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Updated: 12 Aug 2023, 08:05 AM IST