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The Dow Jones Industrial Average fell on Wednesday after another hotter-than-expected inflation report sent Treasury yields to a 10-month high, while gains in chip stocks boosted the NASDAQ Composite.
The 30-stock index unloaded 188.92 points, on 0.4%, to greet Tuesday’s closing bell at 49,571.64.
The S&P 500 index sank 6.41 points to 7,394.55.
The NASDAQ recovered 18.81 points to 26,107.
Technology stocks outperformed from the rest of the market, as inflation fears spurred by higher energy prices due to the Iran war weighed on other sectors such as retail and banking. Nvidia shares traded higher by 2%. Micron Technology gained more than 3%.
Those moves comes after Nvidia CEO Jensen Huang joined President Donald Trump on his trip to China to meet Chinese President Xi Jinping.
On Wednesday, the producer price index jumped 1.4% in April. That marked the largest increase on a monthly basis since March 2022 and was much more than the 0.5% rise that economists polled by Dow Jones were expecting.
Additionally, wholesale inflation gained 6% in April on an annual basis — the biggest since December 2022. That figure was also above the 4.9% consensus estimate.
Prices for the 10-year Treasury dipped, raising yields to 4.48% from Tuesday’s 4.46%. Treasury prices and yields move in opposite directions.
Oil prices nicked up $1.44 to $103.62 U.S. a barrel.
Gold prices dipped $1.90 to $4,684.80 U.S. an ounce.
