Wall Street Slips Ahead of CPI Data; Alphabet Soars on Quantum Computing News
Staff Editor Stocks Dip for Second Day as Investors Await CPI Report, Google Surges on Quantum Breakthrough
U.S. stocks declined for the second consecutive day as investors braced for the upcoming Consumer Price Index (CPI) report, which could significantly influence the Federal Reserve’s interest rate decision. The Dow Jones Industrial Average dropped over 150 points, with major indexes including the S&P 500 and Nasdaq Composite also experiencing losses.
Market sentiment remained cautious ahead of Wednesday’s CPI report release. Economists predict a 2.7% annual increase in prices for November, slightly above October’s 2.6%. A higher-than-expected reading could potentially unsettle markets, despite options traders anticipating minimal CPI-related movement.
The report’s outcome will be crucial for the Fed’s policy meeting on December 17-18, with current market expectations showing an 86% chance of a quarter-point rate cut.
In individual stock movements, Alphabet, Google’s parent company, saw its shares surge by 6% following the announcement of a significant quantum computing breakthrough. Conversely, Oracle’s stock fell nearly 7% after disappointing earnings results, while UnitedHealth Group continued its decline, down 10% since the CEO’s fatal shooting last week.
The market’s performance was further impacted by ongoing geopolitical tensions, with a Chinese investigation into Nvidia contributing to earlier declines this week.
At market close, the S&P 500 settled at 6,034.91, down 0.30%, while the Dow Jones Industrial Average closed at 44,247.83, dropping 0.35%. The Nasdaq Composite ended the day at 19,687.24, declining 0.25%.
In other market developments, Bitcoin’s recent rise above $100,000 has prompted warnings of a potential 13% correction risk from chart analysts. The Bank for International Settlements (BIS) cautioned governments to reduce spending to avoid market panic, while concerns about the post-election market rally’s sustainability for 2025 have emerged.
Commodities saw mixed performance, with West Texas Intermediate crude oil remaining stable at $68.36 per barrel, while Brent crude oil decreased slightly. Gold prices increased by 1.2% to $2,718 per ounce. In the bond market, the 10-year Treasury yield rose by two basis points to 4.222%.
As markets navigate these complex factors, all eyes remain on Wednesday’s CPI report and its potential impact on future Fed policy decisions.
