The low levels recovered the shares that had arrived earlier on Thursday, with investors buying at low prices again despite the negative exposure to wholesale inflation.
Earnings at the end of the day mean that the S&P 500 set the third consecutive closing record, with the smallest margin, closing 0.03% to 6,468.54. Nasdaq Composite and Dow Jones Industrial Average closed slightly lower, with the technology index closing the day with 0.01% down 21,710.67 and Dow of 30 shares losing 11.01 points, or 0.02%, closing at 44.911.26.
S&P and Nasdaq fell 0.4% to their low levels before recovering. Dow lost over 200 points in one point. The main indicators were negatively influenced by the producer price index for July, which suggest that the reduction of interest rates by the US Federal Bank is not sure.
Wholesale prices rose by 0.9% per month, far more than the 0.2% expected by economists who were asked by Dow Jones. The index had remained stable in June. Wholesale prices can be a leading index for consumer prices.
Of course, some investors ignored this percentage of PPI, as the report showed that the increase was largely due to “portfolio management” and air transport. Without these factors, the data would be much closer to the estimates.
Despite the highest inflation index, Fed’s future fulfillment contracts estimated about 93% of interest rates in September, just lower than the day before, according to the CME Fedwatch tool. However, future fulfillment contracts ruled out any possibility of reduction by half.
“It seems quite clear at this point that this was not enough to prevent the Fed from another reduction or to lead it to a circle of reductions,” said Scott Ladner, Horizon Investments’s investment chief executive. “I think people think, yes, it wasn’t a great result for the Producer Price Index (PPI) – it’s definitely not what we would like to see. But we need to see a few more results before we really believe that we are in an inflation restart environment, which is really what can get the Fed out of its course. “
Investors entered the meeting with high expectations, with the S&P 500 and Nasdaq recording a new record in the previous meeting. Reference indicators were hit earlier this week after Veröffentlichung, a lower than expected consumer price index for July.