Stocks Finish Lower After Sticky Inflation Report
The stock market closed lower on Thursday as investors assessed a higher-than-expected consumer price index report for September. The S&P 500 lost 0.21%, while the Dow Jones Industrial Average dropped 0.14%. The Nasdaq Composite dipped 0.05%.
Despite the market’s decline, the S&P 500 remains near an all-time high, and analysts believe the upcoming earnings season could provide further upside. According to Oppenheimer, the broad market index typically gains 2% in the first four weeks of earnings season on a median basis.
Meanwhile, managed futures hedge funds have largely moved on from the inflation trade, focusing instead on short-term trades amid the market’s volatility. The iMGP DBi Managed Futures Strategy ETF, which attempts to mimic the major positions held by this segment of the hedge fund market, is up about 9.5% year-to-date.
The labor market also showed signs of distress, with jobless claims spiking last week, likely due to the impact of Hurricane Helene and the Boeing strike in Michigan. However, economists expect these exogenous factors to be temporary, and the overall employment picture remains strong.
