S&P 500, Nasdaq edge lower with rate cuts, inflation data in focus

President-elect Donald Trump rang the opening bell on Thursday morning as tech stocks edged lower after fresh inflation data cast doubt on investor confidence for the path of interest rates ahead.

The Dow Jones Industrial Average (^DJI) hugged the flatline, while the S&P 500 (^GSPC) slipped roughly 0.2%. The tech-heavy Nasdaq Composite (^IXIC) fell 0.5% to lead the way lower.

Investors received another piece of the inflation puzzle — an update on wholesale prices — after the latest consumer inflation data invigorated stocks on Wednesday, lifting the Nasdaq above 20,000 for the first time.

The in-line consumer price index reading cleared one of the last remaining risks to easing by the Fed in December. That boosted bets on a quarter-point rate cut in December to a near 99% chance, per the CME FedWatch tool.

But the November producer price index released on Thursday morning came in hotter than expected, rising 0.4% from the previous month. Economists had been expecting an increase of 0.2%. That has put the chances of the Fed holding rates steady in January are in focus, as several officials have voiced a cautious stance on policy.

Elsewhere in central banks, the Swiss National Bank unexpectedly lowered its key rate by 0.5%, its biggest cut in almost 10 years. The move set the stage for the European Central Bank decision later Thursday, expected to deliver the fourth rate cut this year as the region’s economy struggles.

A downbeat revenue forecast from Adobe (ADBE) also helped dampen the mood, revealing the Photoshop maker’s struggle for a payoff from its AI investments. Shares in the software maker sank about 12% in early trading.

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Trump rings opening bell as tech stocks lead S&P 500, Nasdaq lower

President-elect Trump rang the opening bell on Thursday morning as stocks pulled back from record highs after fresh inflation put a question mark over whether the Federal Reserve will cut interest rates next week.

The Dow Jones Industrial Average (^DJI) edged down 0.1%, while the S&P 500 (^GSPC) slipped roughly 0.2%. The tech-heavy Nasdaq Composite (^IXIC) fell 0.4% after closing above the 20,000 level for the first time.

Tech stocks led the decline on Thursday with Nvidia (NVDA) falling more than 2%. Adobe (ADBE) shares also sank at the open after the company issues a weak guidance for its 2025 fiscal year.

Wholesale prices in November came in hotter than expected, putting into question whether Federal Reserve officials will opt to cut interest rates at their next policy meeting which starts December 18.
Head of Federal Aviation Administration, Michael Whitaker to step down

The head of the Federal Aviation Administration (FAA) will step down on January 20, the day President-elect Donald Trump will be sworn into office.

Michael Whitaker said he will leave his post in a letter which was released on Thursday morning.
Wholesale prices rise more than expected in November

Stock market futures edged lower after data released this morning showed wholesale prices rose more than expected in November, putting a question mark over whether Federal Reserve officials will want to cut interest rates at their policy meeting next week.

The Producer Price Index (PPI) rose 0.4% from the prior month, compared to expectations of 0.2%. Whole sale prices excluding volatile food and energy prices increased 3.4% year-over-year, versus expectations of 3.2%.

Federal Reserve officials want to see inflation slow down as they continue their easing cycle. The Federal Reserve Open Market Committee will convene on December 18 for its last rate setting meeting of the year.
Adobe drops 11% premarket on weak outlook

Adobe (ADBE) shares fell more than 11% before the market open Thursday after the company issues a weak guidance for its 2025 fiscal year.

In its earnings Wednesday, Adobe said it expects revenue in the range of $23.3 billion to $23.6 billion and adjusted earnings per share between $20.20 and $20.50, according to Bloomberg consensus estimates.. Wall Street analysts had expected the company to guide for an annual revenue of $23.8 billion and adjusted EPS of $20.52, Bloomberg data showed.

The worse-than-anticipated outlook stoked investor fears that AI will disrupt Adobe’s business. TD Cowen downgraded the stock to a Hold rating Thursday morning.

Still, Wall Street analysts largely maintained their Buy ratings on the stock. Some 34 analysts tracked by Bloomberg recommend buying Adobe shares.
Good morning. Here’s what’s happening today.
Trump is ringing the NYSE opening bell today

It’s going to be a busier than normal day out front of the iconic New York Stock Exchange as President-elect Donald Trump is slated to ring the opening bell.

The bell-ringing on the podium feels befitting to a incoming president who has long viewed the stock market’s performance as an indicator of how his policies are doing.

As a memory jogger, in 1985 Ronald Reagan became the first sitting US president to ring the bell.

“With tax reform and budget control, our economy will be free to expand to its full potential, driving the bears back into permanent hibernation,” Reagan said. “We’re going to turn the bull loose.”

The bull was let loose for stocks in Trump’s first term and during President Joe Biden’s term. The S&P 500 rose 61% under Trump from inauguration day through Dec. 11. It has advanced 58% from Biden’s inauguration day to Dec. 11.

Useful historical watch below from that Reagan visit.

Yahoo Finance’s Jared Blikre will be out front of the NYSE this morning. Tune in live on Yahoo Finance for his reporting and more from our team!