New York Stock Market Mixed Ahead of CPI Release... Oracle Plummets Over 8%

November CPI in Focus... Expected 3.3% Increase YoY
Fed Anticipated to Cut Interest Rate by 0.25%P This Month

The three major indices of the U.S. New York stock market showed mixed trends in early trading on the 10th (local time). Investors are adopting a cautious stance ahead of the release of the November Consumer Price Index (CPI), which will influence the Federal Reserve's (Fed) December interest rate decision.

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As of 9:50 a.m. in the New York stock market, the Dow Jones Industrial Average, which focuses on blue-chip stocks, was down 0.34% from the previous trading day at 44,249.74. The S&P 500, centered on large-cap stocks, rose 0.09% to 6,058.04, and the Nasdaq, which is tech-heavy, increased 0.63% to 19,861.49.

By individual stocks, Oracle plunged 8.18% after posting quarterly earnings that fell short of market expectations. Oracle's stock price had risen more than 80% so far this year. Nvidia rebounded 1.59% after falling 2.55% the previous day due to news of an antitrust investigation in China. AMD continued its decline, dropping 1.31% following a 5.57% fall the previous day after Bank of America (BoA) downgraded its investment rating from 'buy' to 'neutral.' Meta, Facebook's parent company, rose 1.13%, while Amazon and Netflix increased by 0.48% and 0.33%, respectively.

Nancy Tengler, CEO of rapper Tengler Investments, analyzed, "Tech stocks have gone through cycles of rises and falls over the past five years, but there is still no better investment destination. It's good for the market to expand, but both the market and the economy will struggle without tech stocks."

Investors' attention is focused on the inflation indicators to be released this week. The November Consumer Price Index (CPI), to be announced on the 11th, is expected to rise 0.3% month-over-month and 3.3% year-over-year, maintaining the same level as in October. The Producer Price Index (PPI) for November, to be released the following day on the 12th, is forecasted to increase 0.3% month-over-month and 2.5% year-over-year, showing a wider increase compared to October's 0.2% and 2.4%, respectively.

The market is placing weight on the possibility of an interest rate cut this month. The November nonfarm payrolls, released on the 6th, increased by 227,000, exceeding expectations of 202,000, but not enough to reverse the outlook for a rate cut. The unemployment rate rose from 4.1% in October to 4.2% in November. Unless the November CPI spikes significantly, there is speculation that the Fed will proceed with a small cut (0.25 percentage points) this month. According to the Chicago Mercantile Exchange (CME) FedWatch, the federal funds futures market reflects an 86.1% probability that the Fed will lower rates by 0.25 percentage points at the December FOMC regular meeting. The probability of holding rates steady is 13.9%.

Government bond yields are on the rise. The U.S. 10-year Treasury yield, a global bond yield benchmark, rose 3 basis points (1bp = 0.01 percentage points) from the previous trading day to 4.23%, while the 2-year Treasury yield, sensitive to monetary policy, increased 1 basis point to 4.14%.

International oil prices are steady as the impact of the ousting of former Syrian President Bashar al-Assad has eased. West Texas Intermediate (WTI) crude oil rose $0.11 (0.16%) from the previous day to $68.48 per barrel, and Brent crude, the global oil price benchmark, increased $0.01 (0.01%) to $72.13 per barrel.