Higher-than-expected producer prices were reported Thursday and concerns about inflation increased, raising the yield on 10-year Treasury bonds to two-week highs.
The main Wall Street indices fall this Friday, March 15 at worry That the inflation could affect the schedule of cuts interest rates of the Federal Reservewhich stirred sensitive values before the meeting of the Fed in the next week.
In that context, the Dow Jones Industrial Average loses 259.33 points, or 0.7%, to 38,646.33 units; he S&P 500 index it lost 44.39 points, or 0.9%, to 5,106.09 units; and the Nasdaq Composite subtracts 181.79 points, or 1.1%, to 15,946.74 units.
Most mega-cap growth stocks were under pressure: Microsoft down 1.7%, while the Nvidia artificial intelligence gives up 0.6%.
Wall Street attentive to inflation that is sustained: concern about the Fed’s cutting schedule
On Thursday, a higher than expected producer prices and increased concern about inflation, for which the 10-year Treasury bond yield to maximum of two weeks.
Depending on the tool FedWatch of CME, traders reduced bets on a Fed rate cut in June to 57%compared to 73% last week.
Now, all eyes are on the new Fed meeting next week, looking for possible tracks about him rate lowering cycle schedule of the central bank.
“People expect more than what will come out of the Fed meeting on the likelihood of rate cuts this year, and then the subsequent release of dot plots around where the Fed expects the future rate path to go,” he said Russell Hackmannof Hackmann Wealth Partners.
In turn, the manufacturing production United States increased more than expected in February, but the previous month’s data was revised downwards, as the sector remains weighed down by rising rates.
The preliminary reading of the general consumer confidence index of the University of Michigan He stood at 76.5 this month, against an estimate of 76.9.
Source: Ambito
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