The S&P 500 stumbled Wednesday, shedding 0.5%, as inflation concerns dampened hopes for rate cuts. The Dow lost 102 points, and the NASDAQ fell 0.9%, with subdued trading expected ahead of the Thanksgiving holiday.
Inflation Concerns Weigh on Pre-Thanksgiving Markets
Investing.com reports that US stocks fell slightly on Wednesday as cautious trading in the lead-up to Thanksgiving and rising inflation data weighed on the market.
The Dow Jones Industrial Average, the S&P 500 index, and the NASDAQ Composite all saw declines of 0.25% and 0.9%, respectively, at 1:03 p.m. ET (18:03 GMT).
Before Thursday's Thanksgiving holiday and Black Friday's early closing, trading volumes are expected to be low on Wednesday.
Despite expectations for a 2.3% annual increase in the PCE price index for October, the preferred inflation indicator of the Federal Reserve, the core PCE price index, increased 2.8% in October, well over the 2% annual objective.
S&P 500 Slips Amid Rate Cut Doubts
The markets have started to doubt the likelihood of a 25 basis point cut in December, and recent indications of persistent US inflation have cast doubt on the extent to which the Fed will reduce interest rates further.
The publication of robust economic data earlier Wednesday, indicating that the US economy was in a healthy enough state to handle interest rates at their current levels, only served to heighten these misgivings.
U.S. economic growth in the third quarter was an unadjusted 2.8% annualized rate, significantly higher than what Federal Reserve officials consider the non-inflationary growth rate of approximately 1.8%. First-time unemployment claims for the week fell to 213,000 from a revised lower 215,000 the week before. Claims have been steadily retreating from the near 1-1/2-year high seen in early October.
Tech Giants Face Thanksgiving Week Losses
On the business front, HP fell 12% after issuing disappointing guidance for 2025, and Dell Technologies fell more than 10% after providing a disappointing revenue outlook for the current quarter, despite the company's bullish comments about AI sales growth.
As a result of decreased client spending on its human resource management software, cloud-based business applications provider Workday reported poor subscription revenue guidance, causing a 5% decline in the stock price.
Morgan Stanley analysts stated on Wednesday that, due to improving market circumstances, Workday's values are still too favorable to ignore, even with the outlook drop.


Foreign Investors Pour $18.65 Billion into Japanese Stocks Amid Market Stabilization
U.S.-Iran Ceasefire: Fragile Truce Raises Hopes for Strait of Hormuz Peace Deal
White House Warns Staff Over Insider Trading Amid Suspicious Oil Market Bets
China's Factory-Gate Prices Rise for First Time in Over Three Years Amid Global Cost Pressures
Oil Prices Crash Nearly 15% After Trump-Iran Ceasefire Deal
Bank of Japan Governor Signals Accommodative Stance Amid Negative Real Rates
Gulf Ceasefire Cracks Rattle Asian Markets and Push Oil Prices Higher
U.S. Stock Futures Surge as Trump Announces Iran Ceasefire, Oil Prices Plunge
U.S. Inflation Surges in March as Iran War and Tariffs Drive Prices Higher
Dollar Stabilizes Amid Fragile US-Iran Ceasefire as Markets Watch Hormuz Strait
U.S. Markets Post Strong Weekly Gains Despite Middle East Tensions and Rising Energy Prices
Trump Slams Iran Over Strait of Hormuz Oil Restrictions Amid Fragile Ceasefire
Asia FX Weekly Gains Hold Amid U.S. Inflation Data and Iran Ceasefire Uncertainty
Gold Surges Near 3-Week High as Trump-Iran Ceasefire Eases Geopolitical Tensions
Federal Reserve Probes Big Banks Over Private Credit Exposure Amid Growing Systemic Risk Concerns
China Set to Exit Deflation Cycle in Early 2026, ANZ Analysts Say
Oil Prices Rebound as Hormuz Disruptions and Middle East Tensions Rattle Markets 



