04:36 PM EST, 12/12/2024 (MT Newswires) -- US benchmark equity indexes dropped Thursday after official data showed that producer prices increased more than Wall Street's projections in November.

The Nasdaq Composite fell 0.7% to 19,902.8 after closing above 20,000 for the first time Wednesday. The Dow Jones Industrial Average fell 0.5% to 43,914.1, and the S&P 500 declined 0.5% to 6,051.3. Consumer discretionary and health care led sectors lower with only consumer staples posting a gain.

In economic news, the US producer price index increased as wholesale costs of goods climbed amid a jump in the food component, the Bureau of Labor Statistics reported. Year over year, producer prices were up 3% in November, outpacing the 2.6% gain analysts expected.

The report's details still support another 25-basis-point cut in interest rates by the Federal Reserve next week, Oxford Economics said.

On Wednesday, the government reported US consumer inflation accelerated in line with market estimates last month on both sequential and annual bases.

Markets widely expect the central bank's Federal Open Market Committee to deliver a quarter-percentage-point rate cut Wednesday, according to the CME FedWatch tool.

Weekly applications for unemployment insurance unexpectedly increased, while continuing claims rose more projected, the US Department of Labor said.

The US 10-year yield gained 6.3 basis points to 4.33%, while the two-year rate rose 4.2 points to 4.2%.

In company news, Adobe (ADBE) shares slumped 14%, the biggest drop on the S&P and the Nasdaq. Late Wednesday, the software maker's fiscal 2025 outlook trailed market expectations, while Q4 results topped views.

Nordson ( NDSN ) shares dropped more than 8%, the second-largest decline performer on the S&P. The precision technology company late Wednesday issued a downbeat fiscal Q1 outlook, while Q4 results exceeded market projections.

Warner Bros. Discovery ( WBD ) disclosed a new corporate structure aimed at unlocking additional shareholder value amid an "evolving media landscape." The media and entertainment giant's stock jumped 15%, the top gainer on the S&P and the Nasdaq.

Boeing ( BA ) stock gained 1.1%, the third-biggest gain on the Dow. The plane maker plans to invest $1 billion to upgrade its facility in Charleston County, South Carolina.

West Texas Intermediate crude oil fell 0.2% to $70.16 a barrel.

The International Energy Agency increased its 2025 global oil demand outlook and said the market is expected to be "comfortably supplied" despite a recent decision by key producing nations to extend output cuts.

On Wednesday, the Organization of the Petroleum Exporting Countries cut its 2024 and 2025 global oil-demand projections for the fifth straight month.

Gold dropped 1.9% to $2,704.60 per troy ounce, while silver slumped 4.3% to $31.57 per ounce.