Stock market today: S&P 500, Nasdaq, Dow slide with rate cuts, sticky inflation in focus

Published On Dec 12, 2024, 4:13 PM

Wall Street experienced a downturn, with the Dow, S&P 500, and Nasdaq all slipping due to new inflation data that raised concerns about the Federal Reserve's interest rate policies. Fresh wholesale price indices revealed a rise of 0.4% in November, exceeding expectations of 0.2%, casting doubt on potential rate cuts in the near future. Major tech firms faced declines, particularly Nvidia and Adobe, the latter plummeting nearly 14% after offering a bleak revenue forecast. Economists are cautious yet uncertain about jobless claims data during the holiday season, which rose unexpectedly. Investment strategists predict a stock market correction of 10%-15% by end of 2025, influenced by high inflation and weakened economic growth.

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Stock Forecasts

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Negative

The market is reacting negatively due to rising inflation and concerns about interest rates, especially affecting tech stocks. Adobe's significant drop hints at struggles in the tech sector, while the overall sentiment points towards caution for investors. There is an expectation of a potential correction in the stock market as high inflation continues to challenge sustained growth.

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Positive

Amid inflation worries, investors remain skeptical about tech stocks' ability to maintain upward momentum. The cautious stance on the Fed's interest rate policy may further pressure these stocks, making it a time to consider defensive positions in the healthcare and staples sectors instead.

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