The S&P 500 and the Dow Jones struggled to turn gains on Friday as inflation was here to eclipse hopes of easing US-China tensions, while growth in heavyweight technology firms supported the Nasdaq.
Data from earlier in the day showed a solid rise in US producer prices in August, leading to the biggest annual gain in nearly 11 years, as the unrelenting pandemic continues to strain supply chains.
“Today’s data on wholesale prices should be an eye-opener for the Federal Reserve, as inflationary pressures still do not ease and are likely to be felt by consumers in the coming months,” said senior investment strategist Charlie Ripley. Allianz for Investment Management.
Markets were also weighed down by comments from Cleveland Federal Reserve Bank President Loretta Meester that she would still prefer the central bank to begin asset purchases this year despite a weak August jobs report.
High-flying growth stocks such as Apple Inc., Facebook Inc., Alphabet Inc. and Amazon.com Inc. rose in early trading, supporting the Nasdaq.
A phone call earlier in the day between US President Joe Biden and Chinese leader Xi Jinping, their first in seven months, was taken as a positive sign that could bring a thaw in relations between the world’s two most important trading partners. Is.
US-listed Chinese e-commerce companies Alibaba and JD.com, ride-hailing firm Didi, music streaming company Tencent Music and electric car maker Neo Inc all gained 1.1% to 1.8%.
Seven of the eleven S&P 500 sub-indices retreated, with utilities, real estate and healthcare stocks falling.
At 10:39 a.m., the Dow Jones Industrial Average was down 101.60 points, or 0.29%, at 34,777.78, the S&P 500 was down 5.72 points, or 0.13%, at 4,487.56, and the Nasdaq Composite was down 3.92 points, or 0.03. %, at 15,252.18.
All the indices were on track to end the week low.
Grocer Kroger said it expected a small drop in annual same-store sales, even after the company declined 9.0%.
The number of issues declined to a 1.08-to-1 ratio on the NYSE and to a 1.46-to-1 ratio on the Nasdaq.
The S&P index recorded 12 new 52-week highs and three new lows, while the Nasdaq recorded 41 new highs and 24 new lows.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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