AIRLINK 194.83 Decreased By ▼ -3.14 (-1.59%)
BOP 9.81 Decreased By ▼ -0.23 (-2.29%)
CNERGY 7.36 Increased By ▲ 0.07 (0.96%)
FCCL 38.58 Increased By ▲ 2.58 (7.17%)
FFL 16.45 Decreased By ▼ -0.46 (-2.72%)
FLYNG 27.54 Increased By ▲ 2.50 (9.98%)
HUBC 131.75 Decreased By ▼ -2.28 (-1.7%)
HUMNL 13.86 Decreased By ▼ -0.28 (-1.98%)
KEL 4.66 Decreased By ▼ -0.12 (-2.51%)
KOSM 6.66 Decreased By ▼ -0.28 (-4.03%)
MLCF 45.39 Increased By ▲ 0.41 (0.91%)
OGDC 213.99 Decreased By ▼ -4.24 (-1.94%)
PACE 6.86 Decreased By ▼ -0.08 (-1.15%)
PAEL 40.06 Decreased By ▼ -1.36 (-3.28%)
PIAHCLA 16.79 Decreased By ▼ -0.07 (-0.42%)
PIBTL 8.32 Decreased By ▼ -0.14 (-1.65%)
POWER 9.43 Increased By ▲ 0.04 (0.43%)
PPL 182.19 Decreased By ▼ -3.74 (-2.01%)
PRL 41.83 Increased By ▲ 0.56 (1.36%)
PTC 24.56 Decreased By ▼ -0.21 (-0.85%)
SEARL 102.53 Decreased By ▼ -2.12 (-2.03%)
SILK 1.00 Decreased By ▼ -0.01 (-0.99%)
SSGC 39.44 Decreased By ▼ -1.47 (-3.59%)
SYM 17.33 Decreased By ▼ -0.72 (-3.99%)
TELE 8.76 Decreased By ▼ -0.15 (-1.68%)
TPLP 12.75 Decreased By ▼ -0.09 (-0.7%)
TRG 65.40 Decreased By ▼ -1.20 (-1.8%)
WAVESAPP 11.11 Decreased By ▼ -0.19 (-1.68%)
WTL 1.70 Decreased By ▼ -0.08 (-4.49%)
YOUW 3.94 Decreased By ▼ -0.06 (-1.5%)
BR100 11,988 Decreased By -121.3 (-1%)
BR30 36,198 Decreased By -400.2 (-1.09%)
KSE100 113,443 Decreased By -1598.8 (-1.39%)
KSE30 35,635 Decreased By -564.3 (-1.56%)

NEW YORK: Wall Street opened lower on Thursday as hotter-than-expected September inflation data reinforced expectations of a 25-basis-point rate hike by the Federal Reserve at its upcoming meeting.

The closely watched Consumer Price Index rose 0.2% on a monthly basis and 2.4% on an annual basis, with both figures being slightly higher than estimated by economists Reuters polled.

The core figure, which excludes volatile food and energy prices, rose 3.3% year-over-year, versus an estimated 3.2%.

The Dow Jones Industrial Average fell 75.96 points, or 0.18%, to 42,433.87, the S&P 500 lost 15.88 points, or 0.27%, to 5,776.16 and the Nasdaq Composite lost 69.40 points, or 0.38%, to 18,222.22.

The Russell 2000, which tracks economically sensitive small-cap stocks, lost 1.09%.

Rate-sensitive sectors fell, with Real Estate losing 0.6%, while Information Technology dropped 0.5%.

After the inflation data was released, traders firmed bets on a 25-bps cut in November at 86.9%, with a 13.1% chance of no change at all, according to CME’s FedWatch.

“The market’s reacting because you’re pricing out the possibility of big Fed rate cuts and the risk that the Fed isn’t going to be as supportive to markets,” said Cameron Dawson, chief investment officer at NewEdge Wealth.

However, weekly jobless claims also rose to 258,000 for the week ending Oct. 5, versus an estimate of 230,000.

“The CPI data coming in hotter than expected, and at the same time (that) initial jobless claims really picked up, is certainly a confusing message for markets,” Dawson said.

“Whether or not that means the Fed is going to be able to deliver the full extent of its expected interest-rate cuts is a good question.” Meanwhile, Delta Air Lines lost 2.1% after forecasting quarterly revenue below expectations in anticipation of slower travel spending.

Other airlines also lost ground, with United Airlines down 1.4%, American Airlines losing 2% and Southwest Airlines slipping 1%. Equity market performance has been largely led by expectations for easing monetary policy, with traders now scrutinizing how much further the central bank will lower borrowing costs this year.

Among other single movers, shares of Pfizer fell 2.4% as former executives distanced themselves from activist investor Starboard’s campaign against the drugmaker.

Both the S&P 500 and the Dow notched up record closing highs on Wednesday, after minutes from the Federal Reserve’s last meeting showed a “substantial majority” of policymakers had been in favor of September’s 50-bps rate cut.

Comments

Comments are closed.