[New York Stock Exchange] S&P 500 and Nasdaq Hit Record Highs... Dow Down 0.48%

The three major indices on the New York Stock Exchange showed mixed results on September 10 (local time). The Dow Jones Industrial Average declined due to a drop in Apple shares, while the S&P 500 and Nasdaq indices both hit record highs.

On this day, the blue-chip-focused Dow Jones Industrial Average closed at 45,490.92, down 220.42 points (0.48%) from the previous trading day. The large-cap S&P 500 Index rose 19.43 points (0.3%) to finish at 6,532.04, marking a new all-time high. The tech-heavy Nasdaq Index also set a record, closing at 21,886.06, up 6.572 points (0.03%).

Reuters Yonhap News

Inflation concerns eased as the August U.S. Producer Price Index (PPI) released on the same day came in below expectations. According to the U.S. Bureau of Labor Statistics, the August PPI, seasonally adjusted, fell by 0.1% from the previous month. This was well below the 0.3% increase forecasted by experts surveyed by Dow Jones. The core PPI, which excludes the volatile food and energy sectors, also dropped by 0.1%, missing the projected 0.3% increase. Year-on-year, the PPI rose by 2.6% and the core PPI by 2.8%, both figures coming in below expectations.

David Russell, a strategist at TradeStation, commented, "The worst-case inflation scenario is not materializing," adding, "A year-over-year inflation rate falling below 3% is welcome news for doves." He further noted that, given the recent weakness in employment data, expectations for a rate cut are growing, but the pace and magnitude of any cuts will depend on the August Consumer Price Index (CPI) to be released tomorrow.

Stephen Brown, an analyst at Capital Economics, pointed out that the weakness in the August PPI appears exaggerated, but noted that in the bigger picture, the effects of tariffs are being reflected very slowly.

With both the PPI and previously released U.S. employment data showing weakness, expectations are mounting that the Federal Reserve will cut rates at the Federal Open Market Committee (FOMC) meeting. The market is closely watching the August CPI, which will be announced on September 11.

According to CME FedWatch, the federal funds futures market on this day reflected a 92.1% probability that the Fed will cut its current 4.25-4.5% rate by 0.25 percentage points in September. The probability of a 0.5 percentage point cut was reflected at 7.9%.

Sam Stovall, Chief Investment Strategist at CFRA Research, said, "With the PPI falling more than expected and employment data coming in much weaker than forecast, the Fed may have reason to cut rates by 50 basis points (1bp = 0.01 percentage points)." He added, "As President Donald Trump said about Fed Chair Jerome Powell, the Fed will try not to move too slowly and will at least keep up with or get ahead of the overall weakening trend." He continued, "Such a move could ignite the market through the end of the year."

By sector, artificial intelligence (AI)-related stocks saw the largest gains. Software company Oracle announced a surge in cloud demand and contracts, with its share price soaring 35.95% by the close. The Wall Street Journal reported that Oracle had signed a $300 billion computing power supply contract with OpenAI.

Nvidia rose by 3.85%, Broadcom by 9.77%, and Advanced Micro Devices (AMD) by 2.39%.

In contrast, Apple fell by 3.23% despite unveiling the iPhone 17 the previous day, as disappointment over its AI services became more pronounced.

U.S. Treasury yields were mixed. The yield on the benchmark 10-year Treasury note, a global bond market indicator, fell by 3 basis points from the previous day to 4.044%. The yield on the 2-year Treasury note, which is sensitive to monetary policy, rose by 0.2 basis points to 3.544%.

International oil prices rose amid heightened geopolitical tensions after Israel struck Qatar, the mediator for the Gaza Strip war ceasefire, and Poland shot down a Russian drone in its territory. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude jumped $1.04 (1.66%) from the previous day to close at $63.67 per barrel.