NY Stock Market Weakens Amid Surging Producer Prices and FOMC Concerns

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Major indices on the New York Stock Exchange fell following news of a significant rise in producer prices. The market is now focused solely on the Federal Open Market Committee (FOMC) meeting results to be released the next day.

On the 14th (local time), the Dow Jones Industrial Average closed down 106.77 points (0.30%) at 35,544.18, the S&P 500 index fell 34.88 points (0.75%) to 4,634.09, and the Nasdaq index dropped 175.64 points (1.14%) to 15,237.64.

The producer price index (PPI) for November, released before the market opened, triggered the stock price decline that day. The historically high rate of increase heightened inflation concerns and fueled expectations of interest rate hikes.

The U.S. Department of Labor announced that the November PPI rose 0.8% month-over-month and 9.6% year-over-year. These figures exceeded the Wall Street Journal's forecast of 0.5% and 9.2%, respectively.

According to FedWatch, the interest rate futures market anticipates that the Fed will initiate its first rate hike in May next year. Goldman Sachs also moved up its forecast for the Fed's first rate hike from June to May next year.

On the day, the 10-year U.S. Treasury yield rose to 1.44%, and the 2-year Treasury yield, which is sensitive to monetary policy, also increased to 0.677%.

Tesla shares fell about 0.82% following news that CEO Elon Musk sold $906.5 million worth of stock.

Ford declined 1.8% as Toyota's announcement to expand electric vehicle sales to 3.5 million units by 2030 acted as a negative factor.

This content was produced with the assistance of AI translation services.