US Stock Market Overview – Stock Drop Led by Energy; CPI is Flat

US stocks sold off on Thursday as investors started to get nervous following a continued outbreak of COVID-19 cases throughout the United States. In Chicago, one of the largest cities in the US, the Mayor told residents to cancel their Thanksgiving plans and stay at home. There is concern that the Biden Administration will ask the US for a 4-6 week lockdown, to get the virus under control. All sectors in the S&P 500 index were lower, led down by Energy. Healthcare was the best performing sector in the index. Bitcoin prices broke out 3-year highs and closed the session above 16K. The cryptocurrency is poised to test the December 2017 highs above 19k. US consumer prices were flat in October, while jobless claims continued to ease.

CPI Was Flat

US CPI was unchanged in October, according to the Burea of Labor Statistics. This was the softest reading of the year. The unchanged reading month over month compares to a 0.2% increase in September. Expectations were for CPI to increase by 0.1% month over month. Year over year, headline CPI rose 1.2%. Excluding food and energy, CPI was also flat compared to a 0.2% increase expected. Core CPI was expected to rise by 1.6% year over year.

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[fx-article-ad]Jobless Claims Ease

The Labor Department reported on Thursday that Jobless claims eased to 709,000 for the week ended November 7, down from 757,000 in the prior week. Expectations were for initial jobless claims to come in at 740,000. Continuing claims fell to 6.79 million, a 436,000 decrease from a week ago.