US: Dow, S&P 500 retreat from records ahead of inflation data

THE Dow and S&P 500 fell on Wednesday, retreating from records amid a banner period for markets ahead of key US inflation data.

Analysts have described the market as primed for a “consolidation” period, meaning a pause or pullback after surging in the wake of the Federal Reserve’s pivot a week ago to cut interest rates.

Investors are looking ahead to Friday’s personal consumption price index reading, a key inflation marker that will influence future Fed actions.

The Dow Jones Industrial Average finished down 0.7 per cent at 41,914.75, ending a streak of four straight records.

The broad-based S&P 500 dipped 0.2 per cent to 5,722.26, while the tech-rich Nasdaq Composite Index added less than 0.05 per cent at 18,082.21.

“It’s been a good run here,” said Tom Cahill of Ventura Wealth Management. “I think there’s some trepidation ahead of the inflation numbers that we’re going to receive on Friday.”

Facebook parent Meta rose 0.9 per cent after unveiling AI chatbots voiced by Judi Dench, John Cena and other celebrities at its annual product launch event.

Automakers General Motors (-4.9 per cent), Ford (-4.1 per cent) and Rivian (-6.8 per cent) stumbled after a downgrade by Morgan Stanley.

Markets have also been monitoring actions in China, which announced new steps to lift youth employment and bolster worker protections after unveiling monetary stimulus plans earlier in the week. AFP