Market Commentary - Foreign Markets
US: Stocks close lower on profit taking As on : 17-May-24  09:15

US stock market finished session in negative territory on Thursday, as profit booking resumed after the major averages reached new record highs on Wednesday.

However, market losses were limited as investors continued to recalibrate their rate-cut expectations following data showing a slowdown in inflation. Investors are betting on two quarter-point interest rate cuts from the Federal Reserve this year

At closing bell, the Dow Jones Industrial Average index declined 38.62 points, or 0.1%, to 39,869.38. The S&P500 index dropped 11.05 points, or 0.21%, to 5,297.10. The tech-heavy Nasdaq Composite index decreased by 44.07 points, or 0.26%, to 16,698.32.

Total 10 of 11 S&P500 sectors closed lower along with S&P500 index. Consumer staples sector was top performer, rising 1.48%, while consumer discretionary was worst performer, falling 0.75%.

Walmart rose 7% after the retail giant raised its fiscal 2025 sales and profit forecast, betting on easing inflation to further boost demand for essentials.

Deere dropped 4.8% after the farm equipment maker trimmed its annual profit forecast for the second time.

ECONOMIC NEWS: Labor Department released a report on Thursday showing initial jobless claims slid to 222,000, a decrease of 10,000 from the previous week's revised level of 232,000.

Also, Labor Department released import price report showing U.S. import prices jumped by 0.9% in April after climbing by an upwardly revised 0.6% in March. The annual rate of growth by import prices also accelerated to 1.1% in April from 0.4% in March.

A separate report released by the Fed showed U.S. industrial production unchanged in April after inching up by a downwardly revised 0.1% in March.

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