US stocks showed resilience on Thursday as they pared premarket losses, despite concerns over inflation and rising bond yields. The Dow Jones Industrial Average and S&P 500 slipped around 0.1%, while the Nasdaq 100 traded around the flatline. The 10-year Treasury yield traded around 4.57%, slightly up after reaching its highest level since November.
The Producer Price Index in March rose 0.2%, lower than expected, but still representing the fastest jump in nearly a year. This comes after Wednesday’s surprise uptick in consumer prices, which led to a market sell-off and reassessment of Federal Reserve policy expectations.
Meanwhile, the European Central Bank signaled potential rate cuts, adding to market uncertainty. Rising oil prices due to geopolitical tensions also added pressure, with crude futures near six-month highs.
Investors are now looking to first-quarter corporate results for momentum, with big banks like JPMorgan set to kick off earnings season on Friday. However, concerns remain about the impact of high borrowing costs on earnings.
Despite the market volatility, there are hopes that corporate performance will provide support for stocks. The focus is on how economic data and Fed policy decisions will shape market sentiment in the coming weeks.