Stock Market News Today, 12/9/24 – Indices Fall Ahead of Key Inflation Data

Last Updated: 4:01 PM EST

Stock indices finished today’s trading session in the red ahead of this week’s key inflation data. Indeed, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 0.84%, 0.61%, and 0.54%, respectively.

In addition, the U.S. Census Bureau released its latest wholesale inventories report earlier today, which showed a 0.2% month-over-month increase in October to $905 billion. This matched the earlier advance estimate and marked an improvement from September’s 0.2% decline. On a year-over-year basis, inventories rose 0.9%.

Wholesale inventories track the value of unsold goods held by wholesalers and act as a key indicator of business confidence and supply chain trends. A rise in inventories can mean companies are optimistic about future demand, but it can also point to slower sales.

Separately, in November, U.S. consumers’ inflation expectations nudged higher across all timeframes, according to the Federal Reserve Bank of New York’s latest survey. Median expectations for inflation rose 0.1% to 3% over one year, 2.6% over three years, and 2.9% over five years. At the same time, uncertainty about future inflation outcomes also increased, reflecting lingering economic concerns.

However, unemployment expectations increased slightly, with the perceived likelihood of the jobless rate rising in the next year moving up to 35%. Job insecurity also grew marginally, as the perceived chance of losing one’s job rose to 13.5%.

First Published: 3:46 AM EST

U.S. stock futures were steady on Monday morning as investors awaited the release of crucial inflation data later in the week. Futures on the Nasdaq 100 (NDX) and the S&P 500 (SPX) were up 0.15% and 0.04%, respectively, at 3:32 a.m. EST, December 9, while the Dow Jones Industrial Average (DJIA) futures were down 0.06%.

Last week, the S&P 500 and the Nasdaq Composite gained 0.96% and 3.34%, respectively, due to positive market sentiment and strong performances from technology stocks. However, the Dow Jones declined by 0.06%.

It must be noted that despite the stronger-than-expected November jobs report, the market is still expecting a 25-basis point rate cut this month. According to the CME FedWatch Tool, there is an 85% chance that the interest rate will be lowered by a quarter point in the Federal Reserve meeting scheduled for December 18.

Investors are now focused on the upcoming release of the November Consumer Price Index (CPI) and Producer Price Index (PPI) reports, which will provide further insights into inflationary pressures. Other key economic data, such as the October Wholesale Inventories and Non-Farm Productivity data points, will also be closely watched by investors.

On the corporate front, investors will be monitoring earnings reports from companies like GameStop (GME), Dave & Buster’s Entertainment (PLAY), Adobe (ADBE), Macy’s (M), Broadcom (AVGO), and Costco (COST). Importantly, Oracle (ORCL), C3.ai (AI), MongoDB (MDB), and Toll Brothers (TOLL) are scheduled to report their quarterly numbers today.

Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.153% at the time of writing. At the same time, WTI crude oil futures are trending higher, hovering near $67.88 per barrel as of the last check.

Elsewhere, European indices opened higher on Monday morning, with investors weighing the geopolitical tensions in the Middle East.

Asia-Pacific Markets Ended Mixed on Monday

Asia-Pacific indices were mixed today as investors assessed China’s weaker-than-expected inflation data and the current political situation in South Korea and France.

At the same time, Hong Kong’s Hang Seng Index gained 2.76%. Further, Japan’s Nikkei and Topix indices climbed 0.18% and 0.27%, respectively. However, China’s Shanghai Composite and Shenzhen Component indices slipped 0.05% and 0.55%, respectively.

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