US stocks slip after sticky inflation report
US stocks ended the day in the red on Thursday, while bond yields rose, after a steady inflation print fuelled concerns that interest rates will need to stay higher for longer. The US consumer price index rose 3.7 percent in September from a year ago, in line with analyst expectations but still above the Federal Reserve's long-term inflation target. Fed policymakers recently indicated they expect interest rates will need to remain higher for longer than previously expected to definitively bring inflation down to its two percent goal. The Dow Jones closed down 0.5 percent at 33,631. The S&P 500 fell 0.6 percent to 4,349, while the Nasdaq slipped by the same amount to end the trading day at 13,574. "The US inflation report came in a little hotter than expected," Edward Moya, an analyst at trading platform OANDA, wrote in a note to clients. But he added that "inflation is still coming down and that should allow the Fed to stay on the 'higher for longer' course." Meanwhile, the yield on the closely watched 10-year US Treasury note, used to help price loans and mortgages, ticked up 0.1 percentage point after the inflation figures were published. "The rise in yields will likely last given pricing pressures will keep most of the Fed hawks leaning towards further policy tightening," Moya said. Among individual firms, shares in Delta Air Lines fell 2.3 percent after the carrier cut its outlook on rising fuel prices. Meanwhile, shares in the pharmacy chain Walgreens jumped 7.0 percent after it reported making progress in an ongoing cost-cutting drive. (AFP)