S&P 500 slips as Treasury yields regain momentum on stronger inflation, jobs data
Investing.com — The S&P 500 fell Thursday after giving up gains amid pressure from rising Treasury yields after inflation came in hotter than expected in September and the job market continues to show strength, weighing on hopes that the Federal Reserve was done with rate hikes.
The S&P 500 fell 0.7%, the Dow Jones Industrial Average fell 0.6%%, 196 points, Nasdaq fell 0.7%.
The consumer price index is expected to have rose to 0.4% in September, taking the annual rate to 3.7%, slightly above expectations for a 0.3% and 3.6% rise respectively.
The core measure, which excludes food and energy and is more closely watched by the Fed, remained steady at a 0.3%, but the «pace of improvement remains “uncomfortably slow,” Stifel said in a note.
The labor market, meanwhile, continued to surprise to upside as the initial jobless claims were short of the expectations.
“The claims data do not show any real evidence of a pickup in layoff activity,” Jefferies said in a note.
Still, the odds for rate hike next month remain low at 12%, according to Investing.com’s Fed Rate Monitor Tool.
Treasury yields resumed their advance, with the yield on the United States 2-Year Treasury rising above 5%.
Delta Air Lines Inc (NYSE:DAL) reported third-quarter results that topped analysts estimates, but airline cut its full-year revenue outlook, sending its shares more than 2% lower.
For the full year, Delta Air Lines said it expects $6.00 to $6.25 in EPS, down from a prior estimate for EPS of $6 to $7. The company attributed the weaker guidance to a rise in fuel costs.
Ford fell 2% as the automaker is set to see further disruptions at its plants after United Auto Workers Union called a surprise strike at Ford’s most profitable plant in Kentucky on
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