Stock market today: US stocks fall as traders fret over inflation data and rate outlook

  • U.S. stocks fell on Friday as investors digested the week's hotter-than-expected inflation data.
  • Consumer and producer prices rose more than expected in February, government data showed.
  • Investors continued to lower their expectations for Fed rate cuts in 2024.

US stocks fell on Friday as traders worried about inflation data and continued to reduce their expectations for rate cuts in 2024. All three benchmark indexes finished lower, while bond yields rose slightly.

The S&P 500 closed with its second consecutive weekly loss.

Both consumer and producer prices rose more than expected this week, with the consumer price index up 3.2% and the producer price index up 1.6% year-on-year, the Bureau of Statistics reported. Labor.

Hot inflation is the Federal Reserve's main focus, and investors are increasingly concerned that central bankers could end up keeping interest rates higher for much longer to prevent prices from rising again, especially because the economy seems to be strengthening.

"This week's inflation reports served as a reminder that normalization is not a straight line and that pressures remain in many pockets," Mark Hackett, Nationwide's chief investment officer, said in a note Friday.

The Federal Reserve's next policy meeting is just around the corner, and central bankers will begin the two-day meeting next Tuesday to decide the next policy move. Markets are pricing in a near 100% chance that the Federal Reserve will keep rates unchanged this month, according to the CME FedWatch Tool.

Investors also continued to lower their expectations for rate cuts for the rest of the year. Markets are now pricing in just a 30% chance that the Fed could cut rates by 100 basis points or more by December, down from a 64% chance priced in a month ago, and the odds of a rate cut in June they have been reduced to approximately one coin. shake.

Here is where the US indices were at the 4:00 pm close on Friday:

This is what is happening today:

In commodities, bonds and cryptocurrencies:

  • West Texas Intermediate Crude fell 0.36% to $80.98 a barrel. Brent CrudeThe international benchmark index fell 0.1% to trade at $85.28 a barrel.
  • Gold fell 0.19% to $2,157.55 an ounce.
  • The 10-year Treasury yield was broadly stable at 4.30%.
  • bitcoin rose 0.26% to $70,230.
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