US open: Shares mixed as CPI rally falters

1st Mar 2024 11:06

(Sharecast News) - US stocks were mixed at the open on Friday as the rally sparked by indications that inflation was falling dissipated.

The Dow Jones Industrial Average fell 0.18%, while the Nasdaq was up 0.13% and the S&P was flat.

Market sentiment was boosted by news that the domestic manufacturing sector was showing signs of a quicker pace of improvement. The overall rate of growth was the fastest since July 2022, with the upturn supported by a renewed increase in production and a quicker rise in new orders, according to survey results from S&P Global.

Domestic and foreign client demand strengthened, driving total sales higher and at the sharpest pace since May 2022.

However, a separate survey from the Institute for Supply Management showed business activity in the US manufacturing sector contracted at an accelerating pace in February, with its purchasing managers index dropping to 47.8 from 49.1 in January - heavily missing expectations of 49.5.

In equity news, regional bank New York Community Bancorp tanked after it announced a leadership change and disclosed issues with its internal controls.

Reporting by Frank Prenesti for Sharecast.com