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:
| Index | Change | Weekly Performance |
|---|---|---|
| S&P 500 (^GSPC) | Decreased by 0.7% | Lost ground |
| Dow Jones Industrial Average (^DJI) | Shed 0.5% or nearly 200 points | Finished 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:
| Index | Change | Weekly Performance |
|---|---|---|
| S&P 500 | Decreased by 0.65% | Lost 0.13% |
| Dow Jones Industrial Average | Dipped by 0.49% | Slight decrease of 0.02% |
| Nasdaq Composite | Slipped 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.