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On a day where President-elect Donald Trump rang the opening bell at the New York Stock Exchange, Wall Street failed to build on a furious rally that has picked up steam after his election win. In focus was fresh inflation data, which helped cast doubt on investor confidence for the path of interest rates ahead.
The Dow Jones Industrial Average (^DJI) was down and the S&P 500 (^GSPC) were both about 0.5%. The tech-heavy Nasdaq Composite (^IXIC) fell roughly 0.6% while shares of Apple (AAPL) rallied less than 1% to close at a record high.
In bonds, the 10-year Treasury yield (^TNX) added 5 basis points to hit 4.32%, its highest closing level since Nov. 22.
The market received another piece of the inflation puzzle on Thursday — an update on wholesale prices — after the latest consumer inflation data invigorated stocks on Wednesday, lifting the Nasdaq above 20,000 for the first time.
The in-line consumer price index reading cleared one of the last remaining risks to easing by the Fed in December. That boosted bets on a quarter-point rate cut in December to a near 99% chance, per the CME FedWatch tool.
But the November producer price index released on Thursday morning came in hotter than expected, rising 0.4% from the previous month. Economists had been expecting an increase of 0.2%. That has put the chances of the Fed holding rates steady in January in focus, as several officials have voiced a cautious stance on policy.
A downbeat revenue forecast from Adobe (ADBE) also helped dampen the mood, revealing the Photoshop maker’s struggle for a payoff from its AI investments. Shares in the software maker sank nearly 14%.
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Costco shares little changed after another quarter of sales growth
Yahoo Finance’s Brooke DiPalma reports:
Costco (COST) slightly beat estimates in its fiscal first quarter results as inflation-weary shoppers turn to the wholesale retailer.
Adjusted earnings per share came in at $4.04, compared to Bloomberg consensus estimates of $3.81. Revenue of $62.15 billion also beat expectations of $61.98 billion.
Same-store sales, excluding fuel, grew 7.2% in the quarter, boosted by its US business, followed by international and then Canada.
Foot traffic, up 5.1%, missed the 6.87% jump Wall Street hoped for, but ticket size grew 0.1%, besting the 0.40% decline the Street predicted.
Shares were up less than 0.5% in after-hours trading.
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A stretch of bad breath in the market
All three major indexes slid as more stocks in the S&P 500 (^GSPC) closed lower than higher for the ninth straight day.
This marked the first time that’s happened in the market since 2001. Notably, during the nine-day stretch to start December the S&P 500 has still been in the green for the month, largely led by Big Tech. But should this weak breadth in the market continue, it could be worrisome for the health of the stock market rally.
“Savvy traders should at least pay attention to some of the warning signs about the overall health of the market. So far, it is the sniffles or just a case of bad breath,” Interactive Brokers chief strategist Steve Sosnick wrote in a note to clients on Thursday. “But there are some symptoms that can lead to something more meaningful if left unattended.”
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‘Too early’ for signal from jobless claims rise
A first glance at Thursday mornings weekly jobless claims release could be seen as a warning sign for the labor market.
Weekly unemployment claims shot up to 242,000 from 225,000 the week prior, and above economists’ expectations 220,000. Given that the current labor market has been defined by low layoffs, an uptick in claims on a consistent basis would be a worrisome signal. But economists were quick to point out that the start of the holiday season is typically a volatile period for the data set.
“Jobless claims data can be particularly volatile during the holiday period,” Citi’s team of economists wrote in a note. “Therefore, it is too early to conclude whether there is a concerning trend in claims data yet. A sustained increase in initial claims over a few weeks would be a more concerning sign of weakness in the labor market.”
This brings us back to a common truth about economic data. The economic narrative rarely hinges on one print, especially when considering that a variety of factors from weather-related disruptions to seasonal trends can distort an already volatile dataset like jobless claims during any given week.
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Stocks extending losses
Stock losses accelerated in afternoon trade.
The Dow Jones Industrial Average (^DJI) was down about 0.5%, while the S&P 500 (^GSPC) was off 0.4%. The tech-heavy Nasdaq Composite (^IXIC) fell roughly 0.4% as shares of Nvidia (NVDA) slipped about 1%.
Meanwhile, the interest rate sensitive small-cap Russell 2000 Index (^RUT) fell more than 1% as investors continued to question the Federal Reserve’s path forward ahead of the central bank’s final meeting of the year next week.
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Stocks will face 10%-15% correction, end 2025 lower, Stifel says
The stock market will end 2025 lower than its current levels, according to Stifel chief equity strategist Barry Bannister.
Bannister sees sticky inflation prompting the Federal Reserve to hold interest rates high as economic growth weakens, serving as key catalysts to the eventual pullback in the stock market rally. Bannister sees the S&P 500 (^GSPC) ending 2025 in the mid-“5,000s.” As of Thursday afternoon, the S&P 500 was hovering just shy of an all-time high at about 6,070.
Among the more than 17 strategists tracked by Yahoo Finance who have listed 2025 year-end calls for the S&P 500, Bannister is the lone strategist to call for the benchmark index to fall in 2025. Still, his call for a pullback in the second half of the year after further gains in the rally isn’t alone. On Wednesday, Fundstrat head of research Tom Lee said he believes the S&P 500 will rally to 7,000 midway through the year before falling to 6,600.
“The environment does not appear conducive to continued equity mania, and we prefer more defensive sectors,” Bannister wrote in a note to clients on Thursday. He added that slower economic growth would benefit “defensive value,” including the Healthcare (XLV), Utilities (XLU), and Staples (XLP) sectors.
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Mortgage rates fall for third consecutive week to average 6.6%
Yahoo Finance’s Claire Boston reports:
Mortgage rates dropped for the third consecutive week after fresh economic data kept expectations about the Federal Reserve’s next interest rate cut intact.
The average 30-year mortgage rate fell to 6.6% in the week through Wednesday, compared with 6.69% a week earlier, according to Freddie Mac data. Average 15-year mortgage rates also dropped to 5.84% from 5.96%.
“The combination of mortgage rate declines, firm consumer income growth, and a bullish stock market have increased homebuyer demand in recent weeks,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “While the outlook for the housing market is improving, the improvement is limited given that homebuyers continue to face stiff affordability headwinds.”
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Youtube TV is raising its prices
Google-owned YouTube TV (GOOG, GOOGL) is raising the prices of its monthly subscription plans, with plans rising to $82.99 per month up from the prior $72.99.
“We don’t make these decisions lightly, and we realize this has an impact on our members,” YouTube wrote in an email to customers.
The company said the increase comes amid the “rising cost of content and the investments we make in the quality of our service.”
YouTube TV, the internet pay-TV service that allows viewers to watch live channels and access local broadcast networks like ABC, CBS, FOX, and NBC, launched in 2017. Since then, its breadth of content, as well as its price point, has made it attractive to consumers looking for a cheaper replacement for their cable packages.
According to Nielsen’s latest TV viewing report, YouTube, which also includes the main digital platform, notched another consecutive month as the most-watched streaming service on television screens during the month of November.
In total, YouTube captured 10.8% of total US TV viewing, up from the prior-year period’s 9%. It also delivered a sizable beat compared to Netflix’s 7.7% market share.
Other à la carte streaming platforms have also raised prices this year.
Disney (DIS) hiked the prices of its various subscription plans in October, while Comcast’s (CMCSA) flagship streaming service, Peacock, implemented price hikes in July, just ahead of the 2024 Paris Olympics.
And in June, Warner Bros.’ (WBD) Max streaming platform raised prices for its ad-free streaming plans, also ahead of key programming: the second-season debut of its blockbuster “Game of Thrones” prequel, “House of the Dragon.”
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Nvidia shares slide 2%, lead chip sector lower
Nvidia (NVDA) shares declined as much as 2% on Thursday to lead most of the chip sector lower. Peers Broadcom (AVGO), Micron (MU), and AMD (AMD) also fell.
With the exception of Wednesday’s rally, Nvidia shares have wavered in recent days. Earlier this week the stock slumped after China opened an antitrust inquiry against the chipmaker amid a struggle between Beijing and China over AI dominance.
Nvidia is reportedly expanding hiring in China as it focuses on artificial intelligence chips for autonomous cars, according to Bloomberg.
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Google and Samsung debut Android XR amid VR, smart glasses push
Yahoo Finance’s Dan Howley reports:
Google (GOOG, GOOGL) on Thursday debuted an all-new version of its Android operating system designed to power virtual and augmented reality headsets and glasses.
Dubbed Android XR, the software, which Google developed in conjunction with Samsung, will allow users to interact with everything from virtual reality apps to real-world objects via your voice, motion controls, and eye-tracking capabilities.
Shares of Google were largely flat immediately following the news.
Read more here.
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Stocks off session lows as Microsoft climbs, Tesla flips to green territory
Stocks came off their session lows on Thursday morning but the major averages were still trading just below the flatline at 11 a.m. ET.
The Dow Jones Industrial Average (^DJI) slipped slightly, while the S&P 500 (^GSPC) fell 0.1% The tech-heavy Nasdaq Composite (^IXIC) dropped nearly 0.2% after slipping as much as 0.5%.
Tesla (TSLA), which closed at a record high in the prior session, turned positive after sliding more than 1% in early trading.
Microsoft (MSFT) also climbed more than 1%.
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Bitcoin gains to hold above $101,000
Bitcoin (BTC-USD) has risen 2% in the past 24 hours to hold above the $101,000 level.
The world’s largest cryptocurrency first broke the $100,000 threshold last week, reaching an all-time high of about $103,900.
Bitcoin has soared since Donald Trump’s presidential victory last month on optimism of crypto-friendly policies under his administration.
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Trump rings opening bell as tech stocks lead S&P 500, Nasdaq lower
President-elect Trump rang the opening bell on Thursday morning as stocks pulled back from record highs after fresh inflation put a question mark over whether the Federal Reserve will cut interest rates next week.
The Dow Jones Industrial Average (^DJI) edged down 0.1%, while the S&P 500 (^GSPC) slipped roughly 0.2%. The tech-heavy Nasdaq Composite (^IXIC) fell 0.4% after closing above the 20,000 level for the first time.
Tech stocks led the decline on Thursday with Nvidia (NVDA) falling more than 2%. Adobe (ADBE) shares also sank at the open after the company issued weak guidance for its 2025 fiscal year.
Wholesale prices in November came in hotter than expected, putting into question whether Federal Reserve officials will cut interest rates at their next policy meeting on Dec. 18.
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Head of Federal Aviation Administration, Michael Whitaker, to step down
The head of the Federal Aviation Administration (FAA) will step down on Jan. 20, the day President-elect Donald Trump will be sworn into office.
Michael Whitaker said he will leave his post in a letter released on Thursday morning.
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Wholesale prices rise more than expected in November
Stock market futures edged lower after data released this morning showed wholesale prices rose more than expected in November, putting a question mark over whether Federal Reserve officials will want to cut interest rates at their policy meeting next week.
The producer price index (PPI) rose 0.4% from the prior month, compared to expectations of 0.2%. Wholesale prices, excluding volatile food and energy prices, increased 3.4% year over year, versus expectations of 3.2%.
Federal Reserve officials want to see inflation slow as they continue their easing cycle. The Federal Reserve Open Market Committee will convene on Dec. 17-18 for its last rate-setting meeting of the year.
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Adobe drops 11% premarket on weak outlook
Adobe (ADBE) shares fell more than 11% before the market open on Thursday after the company issued weak guidance for its 2025 fiscal year.
In its earnings Wednesday, Adobe said it expects revenue in the range of $23.3 billion to $23.6 billion and adjusted earnings per share between $20.20 and $20.50, according to Bloomberg consensus estimates. Wall Street analysts had expected the company to guide for an annual revenue of $23.8 billion and adjusted EPS of $20.52, Bloomberg data showed.
The worse-than-anticipated outlook stoked investor fears that AI will disrupt Adobe’s business. TD Cowen downgraded the stock to a Hold rating Thursday morning.
Still, Wall Street analysts largely maintained their Buy ratings on the stock. Some 34 analysts tracked by Bloomberg recommend buying Adobe shares.
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Good morning. Here’s what’s happening today.
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Trump is ringing the NYSE opening bell today
It’s going to be a busier than normal day out front of the iconic New York Stock Exchange as President-elect Donald Trump is slated to ring the opening bell.
The bell-ringing on the podium feels befitting to an incoming president who has long viewed the stock market’s performance as an indicator of how his policies are doing.
As a memory jogger, in 1985 Ronald Reagan became the first sitting US president to ring the bell.
“With tax reform and budget control, our economy will be free to expand to its full potential, driving the bears back into permanent hibernation,” Reagan said. “We’re going to turn the bull loose.”
The bull was let loose for stocks in Trump’s first term and during President Joe Biden’s term. The S&P 500 rose 61% under Trump from Inauguration Day through Dec. 11. It has advanced 58% from Biden’s Inauguration Day to Dec. 11.
Below is a historical watch from that Reagan visit.
Yahoo Finance’s Jared Blikre will be out front of the NYSE this morning. Tune in live on Yahoo Finance for his reporting and more from our team!
![i’m-nervous,-too!-[part-2]](https://10xwealthreport.com/wp-content/uploads/2026/03/177042-im-nervous-too-part-2-1568x784.jpg)
