Following the release of a higher-than-anticipated wholesale inflation print, US stocks experienced a decline on Thursday. This data is crucial as it could influence the Federal Reserve’s decision at its upcoming policy meeting.
The S&P 500 (^GSPC) dropped by 0.4%, while the Dow Jones Industrial Average (^DJI) decreased by 0.4%. The Nasdaq Composite (^IXIC) also fell by 0.5%. Notably, shares of Nvidia (NVDA) and Tesla (TSLA) both saw a decline of over 4% from the previous session.
February’s Producer Price Index showed a 0.6% increase from the previous month, surpassing the expected 0.3% rise. Investors are closely monitoring whether inflation is decreasing rapidly enough to satisfy Fed policymakers and potentially lead to interest rate cuts.
Despite the market’s initial dismissal of signs of persistent inflation in Tuesday’s CPI report and their optimism for a policy shift in the summer, this sentiment may be changing. According to the CME Group’s FedWatch tool, 40% of traders now anticipate the Fed to maintain current interest rate levels…
2024-03-14 11:06:39
Link from finance.yahoo.com