S&P 500 slips on sticky inflation, weakening labor market data

 Stocks declined Thursday, with the S&P 500

 and Dow Jones Industrial Average falling from records, as economic data pointed to stubborn inflation and an uptick in unemployment.

The broad market index lost 0.3%, while the Dow shed 160 points, or 0.4%. The Nasdaq Composite dropped 0.3%.

Wall Street digested September’s consumer price index, which rose 0.2% on a monthly basis, bringing the annual inflation rate to 2.4% from the previous year. That came in ahead of the 0.1% monthly gain and 2.3% year-over-year rate expected by analysts polled by Dow Jones. The year-over-year number is the lowest since February 2021.

The data comes as concerns mount that the central bank may slow the pace of future cuts, and ahead of the Federal Reserve’s first policy meeting after September’s super-sized move. Fed funds futures trading data suggests a 87% likelihood of a quarter-point cut, according to CME Group’s FedWatch tool.

“Bundle this data with last Friday’s gangbuster jobs number and the path to future rate cuts by the Fed remains uncertain,” said Paul Toft, senior portfolio manager at Key Wealth.

Minutes from the latest meeting released Wednesday also appeared to signal some division over last month’s 50 basis point cut. Although “substantial majority of participants” some favored a smaller move.

https://www.cnbc.com/2024/10/09/stock-market-today-live-updates.html