US markets end lower on profit booking

28 Nov 2024 Evaluate

The US markets ended lower on Wednesday on account of profit booking. The weakness in the broader markets came after the Commerce Department released closely watched consumer price inflation data that matched expectations. The annual rate of growth by the PCE price index accelerated to 2.3 percent in October from 2.1 percent in September, which was also in line with expectations. The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2 percent in October, matching the uptick seen in September as well as street estimates. Excluding food and energy prices, the core PCE price index climbed by 0.3 percent in October, matching the increase seen in September as well as street estimates.

The annual rate of growth by the core PCE price index crept up to 2.8 percent in October from 2.7 percent in September, which was also in line with expectations. The pullback by the Nasdaq came amid substantial weakness among computer hardware stocks, with the NYSE Arca Computer Hardware Index plunging by 3.3 percent. PC makers Dell Technologies (DELL) and HP Inc. (HPQ) plummeted by 12.3 percent and 11.4 percent, respectively, after providing disappointing earnings guidance. Significant weakness was also visible among software stocks, as reflected by the 1.6 percent loss posted by the Dow Jones U.S. Software Index. Weakness among semiconductor and networking stocks also weighed on the Nasdaq, while biotechnology stocks showed a strong move to the upside.

Dow Jones Industrial Average fell 138.25 points or 0.31 percent to 44,722.06, Nasdaq dropped 115.1 points or 0.6 percent to 19,060.48 and S&P 500 was down by 22.89 points or 0.38 percent to 5,998.74.