Investing.com — The S&P 500 closed lower Thursday as Treasury yields climbed following a hotter-than-expected inflation report.
At 4:00 p.m. ET (21:00 GMT), the Dow Jones Industrial Average fell 234 points, or 0.5%, the S&P 500 index slipped 05%, and the NASDAQ Composite dropped 0.7%.
PPI data comes in higher than expected
Consumer price index data, released on Wednesday, came in largely in line with expectations, quelling some concerns that it would overshoot estimates.
But producer prices rose more than expected in November, rising 0.4% last month after an upwardly revised 0.3% increase in October, ahead of the expected 0.2% gain.
In the 12 months through November, the PPI shot up 3.0% after increasing 2.6% in October.
While the upside surprise in the PPI report isn't expected to derail expectations for a third Fed rate cut at the central bank's next week's meeting, it "reinforces the notion of waning disinflationary improvement, and further underscores the need for a patient approach to 2025 monetary policy," Stifel said in a Thursday note.
Adobe disappoints with sales guidance; ServiceTitan jumps on Nasdaq debut
Adobe Systems Incorporated (NASDAQ:ADBE) stock slumped over 14% after the software giant issued a disappointing annual sales outlook, indicating that the company’s recent measures to incorporate artificial intelligence into its offerings were taking longer than expected to generate returns.
Adobe, known for its software for creative professionals, has ramped up its investments in AI amid increased competition from smaller players, whose image generating software is expected to eat into Adobe's market share.
Chewy (NYSE:CHWY stock fell nearly 2% after the top stakeholder of the pet products retailer announced plans to sell $500 million worth of stock.
Warner Bros Discovery Inc (NASDAQ:WBD) detailed plans to split its cable TV business from its streaming and studio units, sending its shares more than 15% higher to a 52-week high.
ServiceTitan Inc (NASDAQ:TTAN), meanwhile, jumped more than 42% on its Nasdaq debut after the cloud software provider priced its $625 million initial public offering at $71 a share.
Broadcom Inc (NASDAQ:AVGO) ended 1% lower after Bloomberg reported Apple (NASDAQ:AAPL) is set to replace the chipmaker's components with its own in-house chip for Bluetooth and Wi-Fi connections starting next year.
(Peter Nurse, Ambar Warrick contributed to this article.)
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