Stock market today: Stocks slip for a second week as inflation data clouds rate-cut bets – Yahoo Finance

Market Summary:

On Friday, US stocks closed lower, marking a second consecutive week of losses for Wall Street. Investors grappled with the implications of elevated inflation figures on the Federal Reserve’s upcoming policy decision. Here’s a breakdown of the day’s activity:

IndexChangeWeekly Performance
S&P 500 (^GSPC)Decreased by 0.7%Lost ground
Dow Jones Industrial Average (^DJI)Shed 0.5% or nearly 200 pointsFinished lower
Nasdaq Composite (^IXIC)Decreased by close to 1%Ended in red

Key Events and Stock Movements:

  • Stocks slipped further following Thursday’s losses, spurred by another higher-than-expected inflation report.
  • Concerns over persistent inflation dampened expectations for a June interest rate cut, prompting investors to reassess their positions.
  • Eyes are now on the February PCE report, the Fed’s preferred inflation measure, expected to provide clarity on inflation trends post the Fed’s policy decision next week.
  • Bitcoin (BTC-USD) retreated from its recent record high, dropping to $68,000 by the end of normal trading.
  • In the corporate realm, Adobe (ADBE) shares fell approximately 14% after issuing a downbeat quarterly sales forecast, highlighting concerns about competition from AI startups.
  • Zillow (Z) tumbled 13% alongside other real estate names after the National Association of Realtors reached a legal settlement, potentially leading to lower commissions for home buyers and sellers.

On Friday, the S&P 500 recorded its second consecutive weekly loss as concerns about inflation persisted, particularly impacting technology stocks. Here’s a breakdown of the day’s trading activity:

IndexChangeWeekly Performance
S&P 500Decreased by 0.65%Lost 0.13%
Dow Jones Industrial AverageDipped by 0.49%Slight decrease of 0.02%
Nasdaq CompositeSlipped by 0.96%Declined by 0.7%

Key Events and Stock Movements:

  • Technology shares experienced broad declines, with Amazon and Microsoft down more than 2% each. Apple and Google-parent Alphabet also registered losses.
  • Chip giant Nvidia exhibited volatility throughout the week due to concerns over its valuation. Despite ending the day slightly lower, it recorded a weekly increase of about 0.4%.
  • Earlier in the week, February’s producer price index exceeded economists’ expectations, contributing to inflationary concerns.
  • The benchmark 10-year Treasury yield rose approximately 22 basis points during the week, fueled by speculation about the Federal Reserve’s response to strong economic data.
  • The Fed is set to commence its two-day policy meeting on March 19, with investors closely monitoring indications of future monetary policy adjustments.
  • Macquarie global FX and rates strategist Thierry Wizman suggested that recent economic data could prompt the Fed to reconsider its stance on inflation and potentially signal an increase in long-term borrowing rates.
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