New York stock market starts mixed with PPI digestion

(Seoul = Yonhap News) Reporter Jeong-won Yoon, Yonhap Infomax = The three major stock indices of the New York Stock Exchange started off mixed as they digested the results of the Producer Price Index (PPI).

As of 9:54 a.m. on the 13th (local time), the Dow Jones Industrial Average on the New York Stock Exchange recorded 52,379.86, up 82.77 points (0.16%) from the previous day. The Standard & Poor's (S&P) 500 index was down 16.88 points (0.22%) from the previous day to 7,575.52, and the Nasdaq composite index was down 118.47 points (0.47%) from the previous day to 25,247.62.

The US October PPI announced on this day was slightly lower than expected, but still maintained a high level.

According to the U.S. Department of Labor, the PPI for all items (headline) last month rose 0.3% compared to the previous month on a seasonally adjusted basis, falling short of the market forecast of a 0.4% increase. Compared to the previous month’s increase rate of 1.4%, it slowed down significantly.

Compared to the same period last year, it rose 6.5%, slightly lower than the market expectation of a 6.6% increase. Nevertheless, it is the highest level since November 2022.

Core PPI, excluding highly volatile food and energy, rose 0.3% compared to the previous month and 5.0% compared to the previous year, meeting expectations.

As PPI fell slightly below expectations, expectations for a 50bp increase in the base interest rate decreased.

According to the Chicago Mercantile Exchange (CME) Fed Watch tool on this day, the probability of a 25 basis point increase in the December benchmark interest rate in the federal funds rate futures market was reflected as 89.7%, and the probability of a 50 basis point increase as 10.3%. The previous day, the probability of a 25bp increase in the base interest rate was 85.5%, and the probability of a 50bp increase was 14.5%.

“I think the Fed will move more gradually,” said Angelo Courkapas, chief global investment strategist at Edward Jones. “High inflation is uncomfortable for the Fed, but there are no signs that inflation is spiraling out of control.”

Looking at each industry, telecommunications and finance showed strength, while technology and industrial goods showed weakness.

Cloud company Cerebras' stock price rose 11.73% as it raised its sales guidance for 2026 and announced that it had secured Microsoft as a customer.

Nvidia fell by more than 4% the previous day and failed to rebound today, falling 2.52%. Jensen Huang previously admitted to having an affair with Alice Huang, a woman accused of being a Chinese spy, and later resigned from his position as CEO of NVIDIA the day before amid reports that he had also had an extramarital affair with a female executive directly under the company.

Microsoft suffered a large-scale failure in major services such as Outlook email, but its stock price only fell 0.14%.

European stock markets also showed mixed results.

The Euro STOXX 50 index is trading at 6,398.35, down 0.09% from the previous day. France's CAC40 index and Britain's FTSE 100 index rose 0.03% and 0.07%, respectively, and Germany's DAX index fell 0.05%.

International oil prices rose.

At the same time, the price of West Texas Intermediate (WTI) crude oil for delivery in December 2026, a nearby contract, is recording $89.28 per barrel, up 0.61% from the previous price.