US open: Stocks dip despite stronger-than-expected economic reports

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Stocks on Wall Street were reversing the strong gains made during the previous session, despite the release of mostly better-than-expected economic data.

As of 1516 BST, the Dow Jones Industrials was down 0.34% at 34,789.65, while the Nasdaq Composite was down by 1.0% to 13,785.04.

Stocks across Europe were also still rising after the ECB hiked interest rates but assured markets that this would be the end of its current rate-rising cycle.

Worth noting, news-flow overnight from China was helping keep markets buoyant – for once – after retail sales and industrial output figures smashed expectations for August.

According to the University of Michigan, consumer confidence was little changed at the start of September, but expectations for inflation over the short and long-term both fell.

The N.Y. Fed's regional factory index meanwhile surprised sharply to the upside, as did industrial production figures for August.

Arm and autos in focus

Arm shares were drifting a tad lower, having finished 25% higher after floating on the Nasdaq on Thursday, valuing the company at $65bn.

The initial public offering, which was said to be 10 times oversubscribed, was the largest stock-market flotation since 2021.

“When a stock goes up 25% in a day, there will naturally be FOMO among investors," said Russ Mould, investment director at AJ Bell.

Nevertheless, Mould added that: “If Nvidia is capable of delivering mega returns, plenty of people will expect the same from Arm. However, investing is never that simple and there are plenty of risks to owning shares in Arm, including the fact it makes a quarter of revenues from China, which exposes it to geopolitical tensions between that country and the West.”

Shares Ford and General Motors were rising despite the United Auto Workers union's decision to go ahead with a strike against the Big Three automakers as workers demand better pay and benefits, along with clarity over how the industry transition to electric vehicles will affect staff.

Dow Jones - Risers

Walt Disney Co. (DIS) $85.75 1.50%
Unitedhealth Group Inc. (UNH) $489.27 1.17%
American Express Co. (AXP) $163.09 0.81%
Visa Inc. (V) $243.23 0.71%
Chevron Corp. (CVX) $168.27 0.62%
Nike Inc. (NKE) $97.50 0.31%
Procter & Gamble Co. (PG) $155.24 0.30%
Amgen Inc. (AMGN) $262.93 0.24%
International Business Machines Corporation (CDI) (IBM) $147.68 0.23%
Verizon Communications Inc. (VZ) $34.10 0.19%