What to Know

  • At 15:24 GMT, the Dow Jones Industrial Average traded at 52,187.16, up 565.68, or 1.10%.
  • The S&P 500 Index traded at 7,731.76, up 12.82, or 0.17%.
  • The Nasdaq Composite traded at 26,630.037, down 62.831, or 0.24%.
  • September producer prices rose 1.3% from August and 6.3% from a year earlier, above estimates of 0.6% and 5.5%.
  • The producer price data followed a hotter-than-expected CPI reading on Wednesday, keeping another Federal Reserve rate increase in front of the market.
  • Fed funds futures still price in at least one more quarter-point hike by year-end, while remarks from Mary Daly and Michelle Bowman helped limit expectations for an October move.
  • The 10-year Treasury yield fell toward 5.06% as buyers moved into bonds despite the hotter inflation data.
  • Gold climbed more than 1% as the dollar weakened and yields moved lower after three straight losing sessions.
  • Technology selling remained a key drag, with CoreWeave down another 7% after dropping more than 15% on Wednesday.
  • Spot gold traders are watching the $4141.97 pivot, with $4066.54, $3996.06, $3942.10, and $4217.40 serving as important chart levels.

Stocks Split as Inflation and Tech Weakness Pull in Opposite Directions

U.S. equity trading showed a divided market as the Dow Jones Industrial Average pushed solidly higher, the S&P 500 managed a modest gain, and the Nasdaq Composite slipped under renewed pressure from technology selling. The broader message from the session was not one of broad risk appetite, but of selective buying. Defensive demand and strength outside the most crowded growth trades helped support the major averages, while weakness in artificial intelligence-linked names continued to challenge the market’s recent leadership structure.

At 15:24 GMT, the Dow Jones Industrial Average was trading at 52,187.16, up 565.68, or 1.10%. The S&P 500 Index was trading at 7,731.76, up 12.82, or 0.17%. The Nasdaq Composite was trading at 26,630.037, down 62.831, or 0.24%. The gap between the Dow and Nasdaq reflected a familiar theme for traders: capital was not leaving equities altogether, but it was rotating away from some of the market’s most heavily owned technology positions.

For the S&P 500, the session carried an important technical and sentiment message. The index remained positive, but the gain was narrow, suggesting investors were still reluctant to chase the rebound while inflation risks and technology stress remained unresolved. The market’s ability to hold green territory mattered, yet the Nasdaq’s decline showed that the speculative engine behind much of the prior advance was still sputtering.

Hot PPI Keeps Federal Reserve Risk in Play

The latest inflation data added another complication for equity bulls. September producer prices rose 1.3% from August and 6.3% from a year earlier. Both readings were above estimates of 0.6% and 5.5%. The producer price numbers followed Wednesday’s hotter-than-expected CPI reading, leaving investors with a back-to-back inflation challenge at a sensitive point for monetary policy expectations.

The market reaction was not straightforward. A hotter producer price reading would normally be expected to pressure equities and lift yields, especially if traders believe the Federal Reserve may need to stay tighter for longer. Instead, Treasury buyers stepped in and bond prices rose as technology stocks weakened. That created a more complicated setup in which inflation risk remained alive, but falling yields offered relief to some rate-sensitive areas of the market.

Fed funds futures still price in at least one more quarter-point hike by year-end. That expectation remains a central issue for equity valuation, especially for technology companies whose prices are sensitive to discount-rate assumptions. However, comments from San Francisco Fed President Mary Daly and Vice Chair for Supervision Michelle Bowman helped limit expectations for an October move. The result was a market that continued to acknowledge policy risk without fully pricing an immediate tightening shock.

Bond Buying Offers Relief, but Questions Remain

The 10-year Treasury yield fell toward 5.06% as buyers looked past the PPI surprise and moved into bonds during the equity rotation. The yield decline helped cushion parts of the market and contributed to the rebound in gold. Still, the key question into the close was whether the bond rally represented durable demand or simply short covering after the technology-led sell-off.

Lower yields can support stocks by reducing pressure on valuation multiples, but that support is less effective when the weakness is tied to company-specific funding concerns or questions about growth assumptions. In the current session, the yield move helped stabilize parts of the market, yet it did not solve the technology problem. Investors were still watching whether buyers would return to the former leadership group or continue shifting into more defensive areas.

The S&P 500’s next challenge is to regain its 50-day moving average and clear the retracement resistance zone. Until that happens, technical traders may continue to treat rallies with caution. A stronger close would help ease downside pressure, but confirmation likely requires improving breadth and evidence that the Nasdaq can stabilize without depending solely on falling yields.

AI Trade Faces Another Test as CoreWeave Slides

Technology sellers remained in control across several closely watched names. CoreWeave fell another 7% after dropping more than 15% on Wednesday. The stock continued to face pressure from concerns over the debt needed to fund its artificial intelligence build-out after its corporate bond yields jumped. For market participants, that issue strikes at the heart of the AI investment theme: whether rapid infrastructure spending can be financed and monetized without putting balance sheets under stress.

Micron and SK Hynix also moved lower as traders worried that China may add enough memory-chip capacity to create a glut. That concern added pressure to the chip trade, where valuations have been supported by expectations for strong demand tied to artificial intelligence, data centers, and advanced computing workloads. If supply growth begins to outpace demand expectations, investors may reassess margins and future earnings assumptions.

Anthropic’s reported third-quarter revenue of $16.8 billion added another layer to the debate. Some traders viewed the figure as a reminder that the AI spending story may not yet be growing fast enough to justify all of the gains already built into parts of the chip trade. The issue is not whether artificial intelligence remains important for markets. The question is whether the pace of commercial revenue, infrastructure spending, and semiconductor demand can continue supporting elevated expectations.

Gold Rebounds as Yields and Dollar Ease

Gold climbed more than 1% as the dollar weakened and Treasury yields moved lower after three straight losing sessions. The move highlighted gold’s sensitivity to real-rate expectations and currency direction. When yields fall and the dollar softens, bullion often attracts renewed interest because the opportunity cost of holding a non-yielding asset declines.

Spot gold was edging higher as traders continued to test the key pivot at $4141.97. On the daily swing chart, the main trend remains down. A trade through $4066.54 would signal a resumption of the downtrend, with potential targets at $3996.06 to $3942.10. A trade through $4217.40 would change the main trend to up. That makes the current zone especially important for short-term direction.

The short-term range runs from $4066.54 to $4217.40, placing its 50% level at $4141.97. Market reaction to that level is likely to set the tone into the Thursday close. A sustained hold above the pivot would suggest buyers are gaining traction after the recent losing streak, while failure to hold it could leave gold vulnerable to renewed downside pressure if yields stabilize or the dollar rebounds.

S&P 500 Outlook Hinges on Nasdaq Stabilization

The Dow and S&P 500 were higher, but the broader market had not settled the technology issue. For the S&P 500 to develop a more durable rebound, the Nasdaq likely needs to stabilize, and that stabilization may need to include CoreWeave, Micron, and the broader memory-chip group. Until then, the index can continue leaning on defensive buyers, but a full risk-on recovery may remain difficult.

Technical traders are focused on whether the S&P 500 can regain its 50-day moving average and clear the retracement resistance zone. Those conditions would help reduce downside pressure and may encourage buyers to treat the recent weakness as a correction rather than the beginning of a deeper decline. Without that confirmation, rallies may continue to face selling from investors looking to reduce exposure to crowded technology positions.

The close is important because it will show whether the yield break is holding or whether the bond bid was mainly a reaction to the technology sell-off. If yields remain under pressure and technology losses ease, the S&P 500 could find a better foundation. If yields turn higher again while AI-linked stocks remain weak, the index may struggle to extend its rebound despite strength in the Dow.

Frequently Asked Questions (FAQs)

How did the major U.S. stock indexes trade at 15:24 GMT?

At 15:24 GMT, the Dow Jones Industrial Average traded at 52,187.16, up 565.68, or 1.10%. The S&P 500 traded at 7,731.76, up 12.82, or 0.17%, while the Nasdaq Composite traded at 26,630.037, down 62.831, or 0.24%.

Why did the PPI data matter for stocks?

The PPI data mattered because September producer prices rose 1.3% from August and 6.3% from a year earlier, above estimates of 0.6% and 5.5%. That kept inflation concerns in focus after Wednesday’s hotter-than-expected CPI reading.

What does the inflation data imply for the Federal Reserve?

The inflation data keeps another Federal Reserve rate increase in front of the market. Fed funds futures still price in at least one more quarter-point hike by year-end, although comments from Mary Daly and Michelle Bowman helped limit expectations for an October move.

Why was the Nasdaq weaker than the Dow?

The Nasdaq was weaker because technology stocks remained under selling pressure. CoreWeave, Micron, and SK Hynix were among the names drawing attention as traders questioned AI funding needs, memory-chip supply, and the pace of revenue growth tied to the AI theme.

What happened to CoreWeave?

CoreWeave was down another 7% after falling more than 15% on Wednesday. Traders continued to focus on concerns about the debt needed to fund its AI build-out after its corporate bond yields jumped.

Why did gold rise during the session?

Gold climbed more than 1% as the dollar weakened and Treasury yields moved lower after three straight losing sessions. Lower yields can reduce the opportunity cost of holding gold, which helped support the recovery.

What are the key gold levels traders are watching?

Spot gold traders are watching the $4141.97 pivot. A trade through $4066.54 would signal a resumption of the downtrend with potential targets at $3996.06 to $3942.10, while a trade through $4217.40 would change the main trend to up.

What must the S&P 500 do to ease downside pressure?

The S&P 500 needs to regain its 50-day moving average and clear the retracement resistance zone to ease downside pressure. A more convincing rebound would also likely require stabilization in the Nasdaq and key technology groups.

What should traders watch into the close?

Traders should watch whether the 10-year Treasury yield continues testing lower support and whether gold holds around its midpoint. The close will also show whether the bond rally is durable or whether buyers were mainly covering shorts after the technology sell-off.