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On Thursday, the stock market took a breather from its recent four-day winning streak, as investors grappled with a rise in bond yields and dissected the latest inflation report. The data revealed that while headline inflation remains persistent, some sectors monitored by the Federal Reserve are showing signs of cooling.
The Dow Jones Industrial Average (^DJI) experienced a 0.5% decline, shedding around 170 points, while the S&P 500 (^GSPC) followed suit with a 0.6% drop. The tech-heavy Nasdaq Composite (^IXIC) was also down by 0.6%.
The Consumer Price Index (CPI) report for September showed that headline inflation remained stable, with prices increasing slightly faster than anticipated by economists. Year-over-year, consumer prices rose by 3.7% in September, matching the previous month's increase. On a monthly basis, consumer prices saw a 0.4% rise.
Meanwhile, both the 10-year (^TNX) and 30-year Treasury (^TYX) yields saw an uptick on Thursday. After several days of declines, the 30-year Treasury yield climbed to over 4.85%. Investors were also keeping a close watch on the third-quarter earnings season. Delta (DAL) stock faced a decline of over 2% as the company adjusted its profit outlook due to surging fuel prices. Up next in the earnings lineup are some of the nation's largest financial institutions, with JPMorgan (JPM), Citi (C), Wells Fargo (WFC), and BlackRock (BLK) all scheduled to report on Friday.
In the commodities market, oil prices maintained their stability, albeit against a backdrop of market uncertainty as Israel readied forces for an anticipated ground assault on Gaza. Crude oil futures (CL=F) remained steady at approximately $83.50 per barrel, while Brent crude futures (BZ=F) saw a slight increase, trading above $86.
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