U.S. markets experienced a downturn on Thursday due to concerns over inflation and interest rates following remarks from Federal Reserve Chair Jerome Powell.
The S&P 500 fell by 0.6%, the Dow Jones Industrial Average decreased by 0.47%, and the Nasdaq Composite retreated by 0.64%.
Powell emphasized that the Federal Reserve is not in a rush to lower interest rates and pointed to external factors such as hurricanes and labor strikes as the cause of recent disappointing job figures. This has led to a reduction in traders' expectations for a rate cut in December.
The Bureau of Labor Statistics reported a slight increase in wholesale prices, indicating persistent inflationary pressures within the economy. Powell acknowledged that achieving the Federal Reserve's long-term inflation target of 2% is likely to be uneven.
Disney's stock surged by 6.2% following the release of its fiscal fourth-quarter results, driven by the profitability of its streaming service, Disney+.
Investor Michael Burry has increased his stake in three Chinese internet companies, indicating a bet on the potential recovery and growth of the Chinese market.
The interplay between corporate earnings, inflation data, and Federal Reserve policy will continue to shape market dynamics.