New York, Friday, 09 December 2022
As investors processed a flurry of data announcements, Wall Street reduced some of its losses on Friday, with the blue-chip index losing just 50 points and the S&P 500 and Nasdaq momentarily moving into positive territory.
Analysts had predicted a slight 0.2% increase in the PPI, which measures the prices paid for final demand goods, but it increased by 0.4% over the prior month in November.
The higher-than-expected US inflation figure set off a selloff in the stock market, with investors losing interest in tech and other growth stocks due to rising Treasury yields.
The markets experienced some respite as a different study from the University of Michigan unexpectedly revealed a decline in short-term inflation predictions to the lowest level in more than a year. Investors predict that the Fed will increase rates by 50 basis points the following week.
DocuSign increased by over 10% in the stock market due to better-than-anticipated quarterly earnings, while Lululemon declined by 12% as a result of a lacklustre outlook for the fourth quarter.
Report by: The Decision Maker - Finance editors