Day Traders Diary

12/12/24

The major averages dropped once again following hotter-than-expected U.S. inflation report, as tech shares failed to keep the momentum seen earlier in the week. The Dow Jones Industrial Average fell 234 points, or 0.53%. The S&P 500 fell 32 points or 0.54% while the Nasdaq Composite fell 132 points back below 20,000 threshold again.

Tech names were notable decliners, software giant Adobe the dog down 13% following weaker-than-expected 2025 outlook. Meta Platforms, Alphabet and Amazon were lower as well. Apple and Microsoft were modestly higher.

The producer price index, which tracks wholesale prices, increased 0.4% last month. Economists polled by Dow Jones expected a 0.2% increase on a monthly basis. The 10-year Treasury yield jumped to its highest level in two weeks at 4.334%. The 2 year Treasury yield rose 4 basis points to 4.19%.

In the commodity space, oil, gold and bitcoin were all lower.

Today follows a mixed session on Wednesday with the Nasdaq topping 20,000 for the first time on Wednesday and reaching new all-time and closing highs. The S&P 500 also gained. The Dow, however, has been down all week.