Dow Jones Today: Stock Futures Slightly Lower Ahead of Key Inflation Data Release

Stocks were lower in afternoon trading Thursday following the release of closely watched inflation and jobless claims data, as a rally that has sent major indexes to record highs stumbles.

The Dow Jones Industrial Average was down 0.4%, while the S&P 500 was off 0.3% and the Nasdaq Composite fell 0.2%. The major indexes rose on Wednesday for the second straight day, with the Dow and S&P 500 hitting record closing highs, as stocks continued rebounding from an early-week selloff.

Investors were digesting new economic reports that painted a somewhat mixed picture of the U.S. economy, as the consumer price index showed that inflation in September was hotter than expected while weekly jobless claims were higher than economists anticipated. Market participants are keeping a close eye on indicators as they seek further confirmation that the economy is on sound footing, while also looking for clues about how aggressive the Federal Reserve will be as it cuts interest rates. 

The Fed cut its benchmark rate last month for the first time in four years and has said that more cuts are coming, though data on inflation and the labor market will drive decision-making on the pace and depth of the easing. The Fed has a dual mandate to promote price stability and maximum employment.

The yield on 10-year Treasurys, which is sensitive to expectations for interest rates, rose to 4.11% from 4.07% yesterday. The yield surged above 4% earlier this week for the first time in two months as market expectations for big rate cuts subsided in the wake of last week’s strong September jobs report.

Among stocks on the move Thursday, Delta Air Lines (DAL) was down about 1.5% after a disappointing earnings report and outlook from the carrier.

Big-name technology stocks were mixed.  AI investor favorite Nvidia (NVDA) was up more than 1%, while Amazon (AMZN) and Alphabet (GOOGL) also gained ground. Microsoft (MSFT), Apple (AAPL) and Meta Platforms (META) were down slightly.

Tesla (TSLA) shares were up slightly, reversing earlier declines, ahead of the EV maker’s eagerly anticipated robotaxi event this evening. Shares of Advanced Micro Devices (AMD) were down nearly 4% as the chipmaker’s ‘Advancing AI’ event got underway.

Crude oil futures were up about 3% after slumping for two straight days, while gold futures were up slightly at around $2,640 an ounce and bitcoin was down about 1.5% at around $60,000