The S&P 500 was little changed even as new data points to continued inflation in the US

real-time updates. U.S. stocks were little changed on Thursday as investors awaited new consumer inflation data to get a better view of the economy, giving major averages a four-day breakā€”a series of victories.

The Dow Jones Industrial Average fell about 75 points or 0.2%. The S&P 500 Index was flat and the Nasdaq Composite rose about 0.3%.

The consumer price index increased by 0. According to the Labor Department report released Thursday, the rate was 4% month-over-month and 3.7% year-over-year. The Dow Jones estimates were 0.3% and 3.6%, respectively. Core inflation data excluding food and energy prices were in line with economists’ expectations, rising 0.3% month over month and 4.1% over 12 months. The September producer price index exceeded expectations, showcasing robust data.

Treasury yields rose following the new data, with the 10-year Treasury yield rising about 4 basis points %, off its lows from earlier in the session. The 2-year Treasury yield was trading at 5.08% after rising by more than 7 basis points.

 

Sonu Varghese, director and macro strategist at Carson Group, pointed out that the current surge in yields has likely diminished the equity risk premium compared to its previous levels. The rapid increase in yields, whether it occurs over a short span such as the past couple of months or even just a single day, consistently shows an immediate inverse relationship with equity prices of course, Varghese said his company remains overweight stocks as he is confident that strong economic reports will lead to earnings in the third quarter.

Shares of Walgreens rose nearly 5% on Thursday after reporting smaller losses and making progress on cost-cutting plans. However, the pharmaceutical company presented moderate profit forecasts and no profits.

Several companies, including JPMorgan, BlackRock, and UnitedHealth Group, are expected to report results on Friday. The ongoing war between Israel and Hamas has raised questions about a possible collapse in oil supplies and a resulting rise in fuel prices if geopolitical instability spreads to the region’s oil-producing neighbors. Brent crude gained 1.9% to over $87 a barrel. WTI crude oil rose nearly 2% to hit $85.14.

The Major Averages ended Wednesday with moderate gains, marking their fourth straight winning session. The Dow Jones gained 0.2% and the S&P 500 gained 0.4%. The tech-heavy Nasdaq Composite Index rose 0.7% to close above its 50-day moving average for the first time since September.

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