The Dow Jones and S&P 500 fell, but the tech-savvy Nasdaq rallied to end the mixed session on Thursday, May 12, after a vital economic indicator showed demand for manufactured goods slowed in April.
The S&P 500 fell 0.13% to 3,930.08. The Dow Jones fell 0.33% to 31,730.30. The NASDAQ Composite rose 0.06% to 11,370.96, and the small-cap Russell 2000 rose 1.24% to 1,739.38.
The Labor Department said Thursday that the producer price index, a key gauge of economic growth, rose 0.5% in April after jumping 1.6% the previous month. The final demand price rose 11% on an annual basis in April, the fifth consecutive double-digit monthly gain, but down from 11.5% in March.
Mega-cap stocks that have outperformed their rivals during the period of low interest rates have been hardest hit this year. Traders are now weighing the latest CPI data which showed inflation rising relatively slowly last month, signaling that peak inflation may be past, which will not warrant further aggressive rate hikes.
In a separate report, the Labor Department also said jobless claims rose by 1,000 to 203,000 the previous week, following an increase of 2,000 the previous week.
The healthcare and consumer discretionary sectors were the main drivers on Thursday. Six of the 11 sectors of the S&P 500 closed in the green. The Technology and Utilities segments were the worst performers.
Shares of AppLovin Corporation (APP) rose 34% after reporting weak first-quarter results.
The Walt Disney Company (DIS) stock fell more than 2% after its operating losses widened in the last quarter and warned of slow growth in its streaming business.
Meme-stock shares, GameStop Corp. (GME) and AMC Entertainment Holdings Inc. (AMC) gained 14.36% and 6.56% respectively on Thursday.
In the consumer discretionary sector, Amazon.com, Inc. (AMZN) rose 1.11%, The Home Depot, Inc. (HD) rose 2.14% and Lowe’s Companies, Inc. (LOW) climbed 1.87%. TJX, Inc. (TJX) and Honda Motor Co., Ltd. (HMC) rose by 1.65% and 1.46% respectively.
In technology stocks, Apple Inc. (AAPL) fell 3.09%, Microsoft Corporation (MSFT) fell 2.31% and NVIDIA Corporation (NVDA) fell 3.21%. Qualcomm Incorporated (QCOM) and Advanced Micro Devices, Inc. (AMD) fell 1.02% and 1.44% respectively.
In healthcare stocks, Pfizer Inc. (PFE) jumped 2.05%, Eli Lilly and Company (LLY) gained 1.34% and AbbVie Inc. (ABBV) gained 1.07%. Merck & Co., Inc. (MRK) and Novartis AG (NVS) gained 1.49% and 1.40% respectively.
In the crypto space, Bitcoin (BTC) and Ethereum (ETH) fell 2.73% and 8.27% respectively. The global crypto market capitalization fell 4.53% to US$1.22 trillion as of 3:56 p.m. ET on May 12.
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Futures contracts and commodities
Gold futures were down 1.77% to settle at US$1,820.92 an ounce. Silver fell 4.24% to US$20.660 an ounce, while copper fell 2.93% to US$4.0857.
Brent oil futures rose 0.43% to US$107.97 a barrel and WTI crude rose 0.88% to US$106.64.
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Yields on 30-year Treasury bonds fell 0.70% to 3.021, while yields on 10-year bonds fell 2.11% to 2.852.
The US dollar futures index rose 0.89% to US$104.795.