US STOCKS-S&P 500, Dow Jones Falls After Inflation Data; Big Tech supports the Nasdaq



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* US producer prices rise solidly in August

* Indices: Dow down 0.29%, S&P down 0.13%, Nasdaq up 0.03% (updates to open)

Sept. 10 (Reuters) – The S&P 500 and the Dow Jones struggled to make gains on Friday, as signs that inflation was here to stay overshadowed expectations of an easing of US-China tensions, while a rise in heavy tech companies supported the Nasdaq.

Data earlier today showed producer prices in the United States rose sharply in August, resulting in the biggest annual gain in nearly 11 years, as the relentless pandemic continues to put pressure on retail chains ‘supply.

“Today’s wholesale pricing data should be revealing for the Federal Reserve, as inflationary pressures still do not appear to be easing and will likely continue to be felt by consumers in the months to come,” he said. said Charlie Ripley, senior investment strategist. for Allianz Investment Management.

The market was also weighed down by comments from Cleveland Federal Reserve Chairman Loretta Mester that she would still like the central bank to start cutting back on asset purchases this year despite the weak employment report for the year. ‘August.

High-end growth stocks such as Apple Inc, Facebook Inc, Alphabet Inc and Amazon.com Inc rose early in the session, supporting the Nasdaq.

A phone call between US President Joe Biden and Chinese leader Xi Jinping earlier today, their first talks in seven months, was seen as a positive sign that could lead to a thaw in relations between the country’s two most important trading partners. world.

Chinese US-listed e-commerce companies Alibaba and JD.com, rideshare company Didi, music streaming company Tencent Music and electric car maker Nio Inc all gained between 1.1% and 1.8%. %.

Seven of the eleven S&P 500 sub-indices fell, with utilities, real estate and health care leading the declines.

At 10:39 a.m. ET, the Dow Jones Industrial Average was down 101.60 points, or 0.29%, to 34,777.78, the S&P 500 was down 5.72 points, or 0.13%, at 4,487.56, and the Nasdaq Composite was up 3.92 points, or 0.03%, to 15,252.18.

All indices were on track to end the week lower.

Grocer Kroger Co fell 9.0% even after saying it expected a smaller drop in annual same store sales.

Falling issues outnumbered advances for a 1.08-to-1 ratio on the NYSE and a 1.46-to-1 ratio on the Nasdaq.

The S&P Index recorded 12 new 52-week highs and three new lows, while the Nasdaq recorded 41 new highs and 24 new lows. (Reporting by Shashank Nayar and Shreyashi Sanyal in Bengaluru; editing by Aditya Soni)

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