US equities slip in red during opening trade
|Major US equity indices have started showing signs of exhaustion and opened lower on Wednesday, with the Dow Jones Industrial Average (DJIA) snapping four consecutive days of record closes.
At the time of writing, DJIA fell around 50 points to 18,875 while the broader S&P 500 index was down 5 points to 2,175. Meanwhile, tech-heavy Nasdaq composite shed 10 point to trade at 5,265.
Today's weaker-than expected releases of Producer Price Index, industrial production and capacity utilization rate from the US was also seen weighing on investor sentiment and dragged all the major indices in the red. In fact, US PPI, measuring inflation at wholesale level, was unchanged in October, defying expectations for an increase. Meanwhile, industrial production was flat and capacity utilization rate dipped in October.
Despite of Wednesday’s mildly weaker economic data, sentiment towards US economy has turned bullish amid expectations of aggressive fiscal stimulus under Trump's presidency and could fuel further gains in the US equity markets.
In currency markets, the overall US Dollar Index continues to scale higher as market participants now seem convinced that the Federal Reserve would eventually raise interest rate in December. The CME group's FedWatch Tool pricing-in over 90% probability of Fed action in December.
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