Stock Market Today: Hotter-Than-Expected Inflation Data Keeps Lid on Stocks
This morning's reading on U.S. supplier prices for November came in higher than expected.

Stocks ended the week on a down note following a disappointing reading on inflation. The Labor Department said earlier that the producer price index (PPI), which measures what suppliers are charging businesses and other customers for goods and services, was up 7.4% year-over-year in November and 0.3% month-over-month. Ahead of next week's Fed meeting, investors were hoping for a bigger sign that inflation is easing, and that was reflected in today's price action.
Diving deeper into today's PPI update, the yearly increase was lower than the 8.1% annual jump seen in October, while the monthly rise matched the previous report. Both November readings were higher than economists were expecting, however. The bulk of the gains came from rising food prices, which were up 3.3% over October. On the flip side, energy prices were down 3.3% from the month prior.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Also in focus today was the University of Michigan's consumer sentiment report, which edged up to 59.1 in December's preliminary reading from November's 56.8. Additionally, consumer inflation expectations for the next 12 months declined slightly, to 4.6% from last month's 4.9%.
The upbeat consumer sentiment reading helped stocks finish off their lows, but the major market indexes still ended the day lower. At the close, the Dow Jones Industrial Average was off 0.9% at 33,476, the S&P 500 Index was 0.7% lower at 3,934, and the Nasdaq Composite was down 0.7% at 11,004.
Low-Volatility ETFs to Consider
Next week is a big one. The November consumer price index (CPI) is due out Tuesday morning, while the Federal Reserve's next policy announcement will be released on Wednesday afternoon. "Clearly inflationary pressures are abating, from input costs to supply chain pressures, and in some cases demand and wages," says Matt Peron, director of research at Janus Henderson Investors. "However, that is not yet being reflected in the official inflation statistics, including this morning's PPI. This may keep some pressure on the Fed to maintain higher policy rates and as a result will pressure equity prices in the near term." Although Peron says his team remains "cautious on risk assets until the inflation picture" is resolved, they "do see a light at the end of the tunnel in coming months."
Investors concerned about the potential for additional volatility in the equities market over the near term do have options. Quality dividend stocks and high-yield exchange-traded funds (ETFs) are just two of the ways investors can protect against any additional stock market turbulence. Low-volatility ETFs are another good option. The 10 funds featured here should help investors reduce volatility in their portfolios, and they do so using a number of different strategies. Check them out.
With over a decade of experience writing about the stock market, Karee Venema is an investing editor and options expert at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
-
What Is a Stock Split, and Why It Matters to You
A stock split can indicate that a company is healthy — but don't fall for the hype.
By Charles Lewis Sizemore, CFA • Published
-
Stock Market Today: Stocks Rally on Debt Ceiling News, Manufacturing Data
A slow start turned into a strong finish for stocks thanks to encouraging debt ceiling updates and the latest economic data.
By Karee Venema • Published
-
Stock Market Today: Stocks Rally on Debt Ceiling News, Manufacturing Data
A slow start turned into a strong finish for stocks thanks to encouraging debt ceiling updates and the latest economic data.
By Karee Venema • Published
-
Is Chevron Stock Set for a Rebound?
Chevron stock received its second analyst upgrade in as many days, boosting hopes for a recovery in the lagging energy major.
By Dan Burrows • Published
-
Stock Market Today: Stocks Close Lower Ahead of Key Debt Ceiling Vote
The major benchmarks spent most of Wednesday in the red as the House prepares to vote on the debt ceiling deal this evening.
By Karee Venema • Published
-
Stock Market Today: Stocks Give Back Big Debt Ceiling Deal Gains
The major benchmarks opened solidly higher Tuesday after lawmakers announced a debt ceiling deal, but optimism faded into the close.
By Karee Venema • Published
-
Stock Market Today: Stocks Jump on Debt Ceiling Progress
The major benchmarks rallied into the long weekend after lawmakers said they're making strides in debt ceiling negotiations.
By Karee Venema • Published
-
Stock Market Today: Stocks Rise After AI Outlook Sparks Explosive Nvidia Rally
The Nasdaq and S&P 500 made impressive advances today after chipmaker Nvidia forecast record quarterly revenue on AI growth.
By Karee Venema • Published
-
Is Nvidia Stock Just Getting Started?
Nvidia stock has more than doubled this year already, but analysts say explosive growth in AI gives NVDA plenty more upside ahead.
By Dan Burrows • Last updated
-
Stock Market Today: Stocks Sink on Debt Ceiling Impasse
While the major benchmarks finished in the red, retail stocks Abercrombie & Fitch and Kohl's popped after earnings.
By Karee Venema • Published