Wall Street Ends Lower as Inflation Data Clouds Rate Cut Prospects

The US stock markets closed lower on Thursday as investors analyzed recent consumer and producer inflation reports, which seemed to complicate the outlook for interest rate cuts ahead of the Federal Reserve's monetary policy meeting next week.

Producer inflation rose more than expected in November, with the producer price index surging 3% year-over-year, marking its highest increase since February 2023. Meanwhile, consumer prices climbed to 2.7% last month, indicating that inflation remains above the Fed's target. Broadcom and Costco are set to report their quarterly earnings after the closing bell.

The Dow Jones Industrial Average dropped by 234 points or 0.53%. The S&P 500 fell 0.54%, while the Nasdaq 100 declined 0.68%. The euro also weakened, falling 0.25% against the dollar to trade at 1.04665.