Stocks in the US finished lower on Friday, driven by concerns sparked by robust PPI data, heightening worries that the Fed may not initiate interest rate cuts sooner than expected. The S&P 500 lost 0.5%, the Dow dropped 145 points and Nasdaq slid 0.8%. The US saw a 0.3% increase in producer prices last month, surpassing forecasts of 0.1%, while the core PPI surged by 0.5%, well above the anticipated 0.1%. Real estate, technology and consumer discretionary were the worst performing sectors while the energy sector managed to stay in the green. Shares of Applied Materials soared 6.3% after the company's earnings, revenue and guidance topped estimates. On the other hand, DoorDash fell 8.1% after reporting a higher-than-expected loss. Meta (-2.2%) and Nike (-2.4%) were also in the red. On the week, the S&P 500 and the Nasdaq lost 0.4% and 1.5%, and the Dow Jones inched lower by 0.2%. Wall Street will be closed on Monday in observance of President Day.
European stocks closed higher on Friday, sustaining early gains and building on the prior session’s rally despite a hotter-than-expected PPI reading in the United States. The Eurozone’s Stoxx 50 added 0.4% to close at a 23-year high of 4,764, and the broader Stoxx 600 jumped 0.6% to extend its record high to 491. Tech shares led the gains on average, propelled by a 1.6% jump for semiconductor giant ASML. Industrial companies also booked gains, with Safran adding close to 3% to extend his week’s earnings-induced rally, while BASF and Air Liquide both added more than 1% to set the pace for chemical makers. On the policy front, ECB member Francois Villeroy de Galhau stated there are several compelling reasons why the ECB should not delay an initial interest rate cut this year. Regarding Stoxx 600 titles, NatWest added more than 7% after delivering strong results and appointing a new CEO.
