On December 13, 2024, U.S. markets declined as investors reacted to higher-than-expected wholesale inflation data. The S&P 500 fell 0.54%, while the Dow Jones Industrial Average dropped 0.53%, marking its sixth consecutive day of losses. The Nasdaq Composite decreased 0.66%, dipping below 20,000, pressured by technology stocks.
U.S. producer prices rose 0.4% in November, surpassing the Dow Jones estimate of 0.2%. Year-on-year, the Producer Price Index (PPI) increased by 3%, the highest since February 2023. This uptick follows a sharp rise in consumer prices, which also contributed to market unease.
In Europe, the Stoxx 600 index declined by 0.14% as the European Central Bank cut its key interest rate to 3%, reducing its growth forecast for the euro zone in 2024 to 0.7% from 0.8%.
Despite the overall market downturn, shares of Broadcom surged 14% in after-hours trading due to a 220% increase in artificial intelligence revenue, reflecting strong performance in the tech sector. Year-to-date, Broadcom’s stock has risen 66.5%, aligning it with other top performers like Amazon and Apple.
As inflation continues to challenge market stability, analysts are closely monitoring the Federal Reserve's target of 2% inflation, raising questions about future monetary policy.