Wall St seized inflation data, Apple fell

September 10 (Reuters) – Major Wall Street indices fell on Friday as signs of higher inflation and a fall in Apple shares following an unfavorable court ruling that offset expectations of a decrease in US-China tensions.

Earlier in the day data showed that US producer prices rose sharply in August, leading to the largest annual increase in nearly 11 years and indicated that high inflation is likely to persist due to pandemic pressures on supply chains. Read more.

“Today’s data on wholesale prices should be open to the Federal Reserve, as inflationary pressures still don’t seem to be diminishing and will likely continue to be felt by consumers in the coming months,” Charlie Ripley said. , senior investment strategist for Allianz Investment Management.

Apple Inc. (AAPL.O) fell 2.7% after a U.S. court ruling on antitrust lawsuit from developer “Fortnite” Epic Games, which removed some of the iPhone maker’s restrictions on how developers can charge in-app payments.

Apple shares were set for the worst one-day drop since May of this year, with a weight on the Nasdaq (.IXIC) and the S&P 500 technology sub-index (.SPLRCT), which fell 0.1%.

The sentiment was also successful in comments from Federal Reserve Bank of Cleveland Bank president Loretta Mester, who would like the central bank to start reducing asset purchases this year despite the weak job report from August. Read more

Investors have been paying close attention to the job market and data hinting at higher inflation recently to give advice on a timetable for the Federal Reserve to start reducing its massive bond-buying program.

The S&P 500 has risen about 19% so far this year, thanks to support from central bank policies and the reopening of optimism, but concerns about rising coronavirus infections and the acceleration of inflation has recently slowed its progress.

The top three U.S. indices gained some support on Friday from news of a phone call between U.S. President Joe Biden and Chinese leader Xi Jinping, which was seen as a positive sign that it could cause a thaw in ties between the two most important trading partners in the world.

At 1:01 pm ET, the Dow Jones Industrial Average (.DJI) rose 12.24 points, or 0.04%, to 34,891.62, the S&P 500 (.SPX) rose 2.83 points, or 0.06%, to 4,496.11, and the Nasdaq Composite (.IXIC) rose 12.85 points, or 0.08%, to 15,261.11.

Six of the eleven S&P 500 subscripts gained, with energy (.SPNY), materials (.SPLRCM) and consumer discretionary stocks (.SPLRCD) increasing the most.

Chinese e-commerce companies Alibaba and JD.com, listed in the US, music transmission company Tencent Music (TME.N) and electric car maker Nio Inc (NIO.N) gained 0.7% and 1.4%

Grocer Kroger Co. (KR.N) fell 7.1% after saying global supply chain disruptions, transportation costs, discounts and waste would affect its profit margins.

Advanced emissions outperformed declines by a ratio of 1.12 to 1 on the NYSE and by a ratio of 1.02 to 1 on the Nasdaq.

The S&P index recorded 14 new 52-week highs and three new lows, while the Nasdaq posted 49 new highs and 38 new lows.

Reports of Shashank Nayar and Shreyashi Sanyal in Bengaluru; Edited by Aditya Soni

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