Investing.com -- US stocks slipped lower Thursday as Wall Street cooled from record highs, weighed by a larger than expected rise in producer prices as well as disappointing results from software giant Adobe (NASDAQ:ADBE).
At 09:55 ET (14:55 GMT), the Dow Jones Industrial Average fell 10 points, or 0.1%, the S&P 500 index slipped 17 points, or 0.3%, and the NASDAQ Composite dropped 90 points, or 0.5%.
Wall Street slightly after the tech-heavy Nasdaq closed above 20,000 for the first time on Wednesday, with technology stocks rallying sharply on the prospect of lower rates in the near term.
PPI data comes in higher than expected
Consumer price index data, released on Wednesday, came in largely in line with expectations, quelling some concerns that it would overshoot estimates.
But producer prices rose more than expected in November, rising 0.4% last month after an upwardly revised 0.3% increase in October, ahead of the expected 0.2% gain.
In the 12 months through November, the PPI shot up 3.0% after increasing 2.6% in October.
While the PPI numbers were higher than expected, the markets still expect the Fed to cut interest rates by 25 basis points when it meets next week.
Adobe disappoints with sales guidance
Adobe stock slumped over 11% after the software giant issued a disappointing annual sales outlook, indicating that the company’s recent measures to incorporate artificial intelligence into its offerings were taking longer than expected to generate returns.
Adobe, known for its software for creative professionals, has ramped up its investments in AI amid increased competition from smaller players, whose image generating software is expected to eat into Adobe's market share.
Elsewhere, Chewy (NYSE:CHWY stock fell 2.7% after the top stakeholder of the pet products retailer announced plans to sell $500 million worth of stock.
Crude steadies after gains
Crude prices fell Thursday, weighed down by the rising US producer prices while traders digested a number of factors, including the potential for more US oil sanctions, fresh stimulus measures in China and a dour outlook on oil demand from OPEC.
By 09:55 ET, the US crude futures (WTI) dropped 0.9% to $69.70 a barrel, while the Brent contract fell 0.7% to $73.06 a barrel.
Prices steadied after rising sharply in the prior session on expectations of tighter global supplies, after the US was seen preparing more oil sanctions against Russia. Prices were also sitting on gains made after top importer China signaled more incoming economic support earlier this week.
US Treasury Secretary Janet Yellen stated on Wednesday that a weaker global oil market could present a chance for additional action against Russia's energy sector.
On the flip side, the Organization of the Petroleum Exporting Countries, known as OPEC, cut its forecasts for oil demand growth in 2024 and 2025, on Wednesday, its fifth consecutive downward revision.
Government inventory data released on Wednesday showed that US oil inventories unexpectedly grew more than expected in the week to Dec. 6.
(Ambar Warrick contributed to this article.)