On Thursday, Eastern Time, the US stock market saw a collective decline among its major indices, with the Nasdaq reversing from historic highs and the Dow Jones Industrial Average experiencing its sixth consecutive day of lossesThe downturn was attributed to some investors opting to take profits ahead of the Federal Reserve's upcoming policy meeting slated for next week.

The Bureau of Labor Statistics released data revealing that the Producer Price Index (PPI) in November increased by 3% year-on-year and by 0.4% month-on-month, both figures surpassing market expectations of 2.6% and 0.2%, respectivelyThese statistics have contributed to a landscape of uncertainty regarding inflation's trajectory and the Federal Reserve's responsive measures.

In addition, the number of Americans filing for first-time unemployment benefits unexpectedly rose last weekThis added to concerns regarding a potentially softening labor market, as the sustained rise in the total number of individuals receiving unemployment benefits since the start of the year stoked fears of economic instability.

Despite the sharp increase in egg prices nudging the PPI inflation rate upward, a slowdown in service costs indicates that the overall trend of decreasing inflation remains intact, which ultimately did not greatly impact market dynamics

Traders seemed to focus their attention more on the newly released jobless claims data than on the PPI report.

Rob Haworth, a senior investment strategist at U.SBank, commented, “Investors are just trying to figure out what the Fed is going to do next weekIs inflation really going to be a problem? Does the Fed need to slow down the pace of interest rate cuts?” This comment underscores the anxiety that pervades market sentiment, especially following the Nasdaq's record-breaking ascent earlier in the week.

On Wednesday, the Nasdaq composite had its first breakout past the 20,000 point barrier, buoyed by strong performance in technology stocksThe Consumer Price Index (CPI) report reinforced investor expectations for further interest rate cuts from the Federal Reserve in the following week, propelling the S&P 500 index to its highest point in nearly a week.

According to the CME Group’s FedWatch Tool, traders are assigning over a 98% probability to a rate cut occurring next week

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However, various Federal Reserve officials have cautioned that, given the resilience in the economy, a prudent approach to easing monetary policy is warranted.

Fundstrat analyst Mark Newton suggests that there remains room for bullish price action in the lead-up to year-end, asserting that the PPI data hasn’t significantly affected the core Personal Consumption Expenditures (PCE) data, which is the Federal Reserve's preferred barometer for inflation.

As trading came to a close, key indices showed declines, with the Dow Jones Industrial Average dropping 234.44 points, or 0.53%, concluding at 43,914.12. Simultaneously, the Nasdaq fell by 132.05 points, a 0.66% drop closing at 19,902.84, while the S&P 500 index reported a decline of 32.94 points, equating to a 0.54% fall, finishing at 6,051.25.

Among the 11 sectors within the S&P 500, only the consumer staples sector recorded a slight rise of 0.18%, while the communication services sector decreased by 0.78%, the financial sector fell by 0.41%, healthcare dipped by 0.83%, and information technology saw a decline of 0.47%.

In terms of major stocks, notable declines were seen among large technology players

Google fell by 1.76%, Nvidia decreased by 1.41%, Tesla slipped by 1.57%, and Amazon saw a drop of 0.56%. However, Apple and Microsoft experienced minimal gains, with Apple up 0.6% and Microsoft slightly rising by 0.13%.

Adobe, a developer of image processing software, suffered a nearly 14% drop in stock value, attributed to its disappointing annual performance guidanceThe gold and silver mining sector faced widespread declines, with Coeur Mining down nearly 7%, Hecla Mining, AngloGold, Pan American Silver decreasing over 5%, and Harmony Gold down more than 4%.

Uranium stocks also featured notable declines, with Uranium Energy down 3.3%, NexGen Energy falling close to 4%, and Oklo sliding by 4.7%. Further complicating matters, reports emerged that Canada is contemplating the imposition of export taxes on uranium and other commodities, affecting market sentiment.

On a more positive note, American software supplier ServiceTitan marked a significant first-day rally after its IPO, soaring by 42.3% as the company raised approximately $625 million through the initial public offering.

The Nasdaq Golden Dragon China Index closed slightly up by 0.18%, with mixed performances observed among popular Chinese concept stocks

Tencent Music rose more than 2%, while Pinduoduo and Baidu were each up by over 1%. Meanwhile, declines were noted for iQIYI and Youdao, both falling over 2%, and NIO also experienced a drop exceeding 1%.

In company-specific news, Google announced a partnership with Samsung to develop a new head-mounted display device, with the first product expected to launch next yearThe tech giant unveiled a revamped version of its Android XR operating system, aimed at enhancing interaction modes for virtual and augmented reality applications.

On the production front, Apple is reportedly set to transition to utilizing its own developed wireless chips beginning next year, moving away from reliance on BroadcomThis shift will involve the new Proxima Bluetooth and Wi-Fi chips, which have been under development for several years.

For Broadcom's fourth quarter, adjusted net revenue reached $14.05 billion, just shy of the anticipated $14.08 billion