US Stock Market Today: Dow and S&P 500 fall after PPI; Bitcoin retreats below $80

• High PPI pressures Dow, S&P 500 and Bitcoin
• The Federal Reserve is keeping the market attentive to interest rates in the US.
• Bitcoin falls as investors avoid risky assets.

US stock markets opened lower on Wednesday after the release of stronger-than-expected producer price index (PPI) data, increasing caution among investors and putting pressure on the cryptocurrency market. Bitcoin was also trading lower, falling back below the $80 mark.

The S&P 500 index was down 0,17%, at 7.388,08 points, while the Dow Jones Industrial Average fell 0,54%, to 49.491,35 points. The Nasdaq registered a slight increase of 0,12%, to 26.118,73 points, supported mainly by technology stocks.

Meanwhile, the Russell 2000, an index focused on smaller-capitalization companies, fell 0,55% to 2.827,12 points. The VIX index, known as the fear gauge on Wall Street, rose 1,72%, indicating increased risk aversion in financial markets.

In the cryptocurrency market, Bitcoin was trading at US$79.658,27, down 0,97% in the last few hours. This movement mirrored the pressure seen in traditional markets following new economic data from the United States.

According to official figures released on Wednesday, producer price inflation in the U.S. reached 6% in April compared to the same period last year, above market expectations, which projected 4,8%. This data reinforced the perception that American inflation remains resistant, especially due to higher fuel costs.

The PPI figures came shortly after the Consumer Price Index (CPI) data also negatively surprised the market. As a result, investors have increased their bets that the Federal Reserve will keep interest rates unchanged at its next meeting.

The cryptocurrency market is closely monitoring these expectations, as high interest rates tend to reduce the flow into assets considered more volatile, including Bitcoin and other cryptocurrencies.

In addition to inflation, investors are also monitoring the trip of the current US president, Donald Trump, to China. The meeting with President Xi Jinping is expected to include discussions on international trade and artificial intelligence.

Executives from major American companies are accompanying the delegation. Nvidia CEO Jensen Huang is participating in the trip alongside Elon Musk of Tesla and Tim Cook of Apple.

Among other assets, gold was trading virtually unchanged at 4.687,10 points, while crude oil advanced 0,31%, trading at US$102,50 per barrel.

During earnings season, Cisco Systems and Alibaba reported results that exceeded expectations for revenue and earnings per share. Birkenstock, however, reported performance below market projections.