Stock prices fall after reports of severe inflation

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U.S. stocks started higher Thursday but quickly reversed. The sharper-than-expected inflation data was one of the last pieces of data that could sway the Federal Reserve at next week’s policy meeting.

The S&P 500 (^GSPC) fell 0.4%, and the Dow Jones Industrial Average (^DJI) fell 0.3%, or 100 points.

The tech-heavy Nasdaq 100 (^IXIC) also fell 0.4% after Nvidia (NVDA) and Tesla (TSLA) fell on Wednesday.

The producer price index rose 0.6% in February, beating expectations for a 0.3% rise. Investors were watching whether inflation cooled quickly enough to satisfy Fed policymakers and threaten a rate cut. That said, markets ignored signs of persistent inflation in Tuesday’s CPI report and held firm to hopes of a policy reversal in the summer.

Meanwhile, retail sales rose 0.6%, falling short of the expected 0.8% increase. All eyes were on Thursday’s release of statistics for clues about the health of the U.S. economy ahead of next week’s two-day central bank meeting.

In commodities, crude oil continued its resurgent rally after the IEA warned that supplies would be delayed this year and U.S. stockpiles would shrink. WTI crude oil futures (CL=F) remained just above $80 a barrel, the highest since November, while Brent crude oil futures (BZ=F) rose towards $85.

On the corporate side, Fisker (FSR) stock plummeted nearly 40% following a Wall Street Journal report that the electric vehicle maker was considering filing for bankruptcy.

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Thursday, March 14, 2024, 7:28 PM GMT+5:30

Stock prices reverse due to higher-than-expected inflation

Stocks started higher, but quickly turned negative in early trading.

The S&P 500 (^GSPC) fell 0.3%, and the Dow Jones Industrial Average (^DJI) also fell 0.4%, or about 100 points. The Nasdaq Composite Index (^IXIC) also fell below the flatline.

Nvidia (NVDA) started the day with a decline for the second day in a row. On Wednesday, the chipmaker’s stock price along with Tesla (TSLA) dragged down its stock price.

The producer price index rose 0.6% in February, beating expectations for a 0.3% rise. Investors were eyeing the printout as the last major data point ahead of the Federal Reserve’s major policy meeting next week.
Thursday, March 14, 2024 7:02 PM GMT+5:30

Stocks rise slightly despite higher-than-expected inflation

Stock prices rose slightly. Despite Thursday’s larger-than-expected inflation record.

The S&P 500 (^GSPC) rose 0.1% and the Dow Jones Industrial Average (^DJI) rose 0.3% or more than 100 points. The Nasdaq Composite Index (^IXIC) also rose 0.2%, rebounding from yesterday’s decline.

Nvidia (NVDA) started the day with a decline for the second day in a row. On Wednesday, the chipmaker’s stock price along with Tesla (TSLA) dragged down its stock price.

The producer price index rose 0.6% in February, beating expectations for a 0.3% rise. Investors were keeping an eye on the printout as expectations grew that Fed policymakers would reiterate their intention to cut interest rates this year after next week’s Fed meeting.
Thursday, March 14, 2024 6:30 PM GMT+5:30

Retail sales recover

Retail sales rebounded in February after suffering the steepest decline in almost a year last month.

Retail sales rose 0.6% in February from the previous month, according to Census Bureau data. Economists had expected spending to rise 0.8%, according to Bloomberg data. Retail sales had previously recorded an unexpected 1.1% decline in January.

Sales excluding cars and gasoline rose 0.3% in February, in line with expectations.