US stocks took a slight dip on Thursday, with major indices edging lower following a combination of factors. The key driver was a hotter-than-expected Consumer Price Index (CPI) inflation report for September, which showed a year-over-year increase of 2.4%. While this was slightly down from August’s 2.5%, it exceeded the consensus estimate of 2.3% and sent a ripple through the market. Adding to the downward pressure, oil prices surged over 3% to $75 per barrel, driven by disruptions caused by Hurricane Milton and rising tensions in the Middle East. The energy sector, however, benefited from the rally in oil prices, outperforming the broader market.
Meanwhile, the US economy showed a mixed picture. In a separate report, weekly unemployment claims jumped to 258,000 for the week ending Oct. 5, surpassing forecasts. This spike was likely influenced by auto industry layoffs in Michigan and disruptions caused by Hurricane Helene. Despite the inflation uptick and unemployment rise, economists and investors remained largely optimistic, with expectations of a 25-basis-point interest rate cut in November.
The S&P 500 slipped 0.2% from its record high set on Wednesday, while the Dow Jones Industrial Average and the tech-heavy Nasdaq 100 mirrored the decline. Small-cap stocks lagged even further, with the Russell 2000 dropping 0.9%.
In other market news, Treasury yields remained stable, while the US dollar gained modestly. Gold and silver prices both rose, with gold advancing 0.5% and silver up 1.5%. Bitcoin softened 0.4% to $60,300.
Among the notable stock movers on Thursday, Advanced Micro Devices (AMD) fell over 3%, reflecting some investor disappointment during its Advancing AI keynote. On the other hand, Celsius Holdings (CELH) soared 12%, building on a 6% gain from the previous session, as the energy drink stock gained momentum among retail investors. Increased social media chatter pointed to the stock bouncing off key support levels, further fueling the rally.
Cloudflare, Inc. (NET) shares jumped 7% following the announcement of a new president of product and engineering. First Solar Inc. (FSLR) plunged nearly 10% after Jefferies analyst Dushyant Ailani reiterated a Buy rating but lowered the price target from $271 to $266. Peer Enphase Energy Inc. (ENPH) also saw a decline, falling over 5%.
