NEW YORK – U.S. stock markets stalled on Thursday morning as economic data painted a worrying picture. The S&P 500 dipped 0.3% in early trading, on track for its third loss in four days, while the Nasdaq Composite fell 0.4% from Wednesday’s record high. The Dow Jones Industrial Average remained relatively flat.
Investor sentiment was shaken by a report showing that more Americans applied for unemployment benefits last week than analysts anticipated. Compounding the unease, inflation at the wholesale level for November came in hotter than expected, signalling continued price pressures.
Adobe shares plummeted 11% after the software company issued a lacklustre forward forecast despite posting solid quarterly earnings.
On the policy front, investors are awaiting the Federal Reserve’s upcoming meeting, where most analysts expect another interest rate cut following September’s decision to ease rates. The central bank has been gradually reducing rates from a two-decade high to stimulate a slowing job market and address inflation, which is nearing the Fed’s 2% target.
Global Markets React
Globally, markets presented a mixed outlook. European stocks, including Germany’s DAX and France’s CAC 40, were steady ahead of the European Central Bank’s anticipated interest rate cut. Analysts expect a quarter-point reduction from the current 3.25% benchmark, as inflation in the eurozone cools and economic growth slows.
In Asia, Chinese markets rose as Beijing unveiled plans to expand its private pension system nationwide beginning December 15. The Hang Seng Index in Hong Kong jumped 1.2%, while the Shanghai Composite gained 0.9%. In Japan, the Nikkei 225 rose 1.2%, buoyed by tech stocks.
Elsewhere, South Korea’s Kospi climbed 1.6%, while Australia’s S&P/ASX 200 slipped 0.3%.
Commodities and Currencies
In commodities, U.S. benchmark crude oil rose 22 cents to $70.51 per barrel, and Brent crude gained 16 cents to $73.64.
The U.S. dollar weakened slightly, trading at 152.25 Japanese yen, down from 152.46 yen, while the euro edged higher to $1.0500.
As inflation reports and central bank decisions loom, markets remain volatile, reflecting uncertainty over global economic recovery and monetary policy directions.
