Stocks experienced fluctuations throughout Thursday’s trading session, displaying modest movements following a significant turnaround from the previous day.As of now, major indexes are showing mixed results. The Dow has declined by 49.66 points or 0.1%, settling at 40,812.05. Meanwhile, the S&P 500 has risen by 7.05 points or 0.1% to 5,561.18, and the Nasdaq has gained 58.44 points or 0.3%, reaching 17,435.97.The day’s lackluster performance is largely due to traders processing the latest inflation data. The Labor Department released a report on producer price inflation before the market opened, revealing that the producer price index for final demand edged up by 0.2% in August, with revised data indicating prices remained stable in July.Economists had anticipated a 0.1% increase in producer prices, consistent with the previously reported uptick for the preceding month. This data, combined with a recent report showing a slightly higher than expected rise in core consumer prices, has diminished expectations for aggressive interest rate cuts by the Federal Reserve.Additionally, the report noted that the annual rate of producer price growth slowed to 1.7% in August, down from a downwardly revised 2.1% in July. The year-over-year increase in producer prices was anticipated to decelerate to 1.8% from the originally reported 2.2% for the prior month.”Core CPI surprised yesterday, and PPI came in hotter than forecast today, but we don’t think we’re at the start of a renewed rise in inflation,” commented Oren Klachkin, Nationwide Financial Markets Economist. “Rather, we think they are evidence of a bumpy path to 2%. A cooling economy and deflating labor market should dampen price pressures going forward.”The Labor Department also released a separate report revealing a modest increase in first-time claims for U.S. unemployment benefits for the week ending September 7th.**Sector News**Gold stocks surged sharply alongside the precious metal’s price, causing a 4.8% spike in the NYSE Arca Gold Bugs Index. Significant strength was also evident among networking stocks, with the NYSE Arca Networking Index up by 3.1% to a record intraday high.Netgear (NTGR) shares soared by 32% after the company raised its third-quarter revenue guidance and resolved a patent dispute with TP-Link Systems. Oil service, telecom, and steel stocks also displayed considerable strength, while a steep decline in Moderna (MRNA) shares negatively impacted the biotechnology sector.Moderna’s shares plummeted by 16.9% following the company’s announcement that it expects to reduce annual research and development expenses by approximately $1.1 billion by 2027.**Other Markets**In overseas trading, stock markets across the Asia-Pacific region mostly moved higher on Thursday. Japan’s Nikkei 225 Index surged by 3.4%, while Hong Kong’s Hang Seng Index climbed by 0.8%.European markets also saw gains, with the German DAX Index up by 0.9% and the French CAC 40 Index and the U.K.’s FTSE 100 Index both increasing by 0.5%.In the bond market, Treasuries continued a slight pullback for the second consecutive session. Consequently, the yield on the benchmark ten-year note, which inversely moves with its price, increased by 3.6 basis points to 3.689%.The material has been provided by InstaForex Company – www.instaforex.com
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