ASX set to open lower as Wall Street falls late

Stocks ended a choppy day lower on Wall Street after a drop in the late afternoon erased temporary gains that the major indexes had been clinging to for much of the day.

The S&P 500 regained 0.3 percent on Wednesday, its sixth consecutive loss. The Dow and Nasdaq ended with smaller losses. Two- and 10-year Treasury yields closed lower. Stocks slipped between gains and losses for most of the day as traders analyzed a report from the government that showed wholesale inflation eased last month, although it was slightly worse than expected. Crude oil prices fell.

Inflation remains high on Wall Street’s mind. attributed to him:NYSE

The Dow Jones Industrial Average lost 0.1 per cent and the Nasdaq fell 0.1 per cent. The Australian stock market is set to decline at the open, with futures at 6.59AM ET pointing to a decline of 18 points, or 0.3 percent, at the open. The ASX index closed flat on Wednesday.

FMCG companies also rose on a large scale. PepsiCo rose 4.2 percent after it raised its profit forecast for the year following encouraging quarterly financial results.

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Small-cap stocks fell in a possible sign that Wall Street is concerned about economic growth. The Russell 2000 index fell 0.3 percent.

Treasury yields, which drove much of the recent trading on Wall Street, have remained relatively flat. The yield on the 10-year Treasury, which affects mortgage rates, fell to 3.93 percent from 3.95 percent late Tuesday. The yield on the two-year Treasury rose to 4.32 percent from 4.31 percent late Tuesday.

Markets have been volatile all week as investors await the latest round of major corporate earnings reports and fresh reports on inflation and retail sales. The benchmark S&P 500 is exiting five consecutive losses and is approaching its lowest point in nearly two years.

A report from the government showed that wholesale inflation eased last month, although it was slightly worse than economists had expected. A more watched component of inflation data matched economists’ expectations.

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Originally published at Melbourne News Vine