US stocks were steady on Thursday as investors digested fresh inflation and labor data testing high-running expectations for a quarter-point interest-rate cut next week.
The S&P 500 (^GSPC) was flat while the Nasdaq Composite (^IXIC) was also little changed, coming off sharp closing gains fueled by a tech rally. The Dow Jones Industrial Average (^DJI) rose 0.1%.
The market is regrouping after a seesaw Wednesday that saw revived enthusiasm for tech growth pull stocks out of a slide driven by rapidly ebbing hopes for a jumbo-sized 0.5% rate cut by the Federal Reserve.
A fresh “core” consumer inflation reading came in hotter than expected — just slightly, but enough to keep the Fed on track for a 25 basis point move in its Sept. 18 decision. Traders’ odds of a cut that size now stand at 85%, from around 50% just days ago.
Read more: Fed predictions for 2024: What experts say about the possibility of a rate cut
Wholesale prices rose 0.2% on a month-over-month basis in August, slightly above what economists anticipated. On an annualized basis the Producer Price Index rose 1.7%, in line with expectations while July’s PPI was revised to the downside.
Initial jobless claims climbed more than expected to 230,000 last week, an increase of 2,000 from the prior weekly period.
On the corporate front, tech-watching investors digested news that OpenAI is in talks to raise funds at a $150 billion valuation, more than double the $86 billion level seen for the startup earlier this year.
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