NEW YORK – US stocks closed mixed on Friday, as investors digested the news that producer inflation came in higher than expected last month.
Data published earlier Friday showed US wholesale prices picked up in July on a surge in services costs, although the overall inflation figure remains muted.
The Dow Jones Industrial Average closed up 0.3 per cent at 35,281.40, while the broad-based S&P 500 dropped 0.1 per cent to 4,464.05.
The tech-rich Nasdaq Composite Index saw the largest daily decline, falling 0.6 per cent to end the week at 13,644.85.
“We had inflation data which came in higher than expected but the market was caught off guard because yesterday’s (consumer) inflation data came in lower than expected,” Mr Adam Sarhan, of 50 Park Investments, told AFP.
“So the market likes certainty and right now we are getting a lot of uncertainty with respect to inflation.”
The Nasdaq has declined in both of the last two weeks, reversing the gains seen last month.
The US Federal Reserve raised its benchmark lending rate last month and indicated it would take a data-dependent approach to any future increases.
Despite a slight uptick in consumer prices, futures traders still see a strong possibility that the Fed will vote to hold rates steady next month, according to data from CME Group.
Two- and 10-year Treasuries both rose Friday following the larger-than-expected increase in the producer price index. AFP
