The S&P 500 falls after high inflation data | Top Vip News

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US stocks fell on Thursday following the release of a higher-than-expected wholesale inflation figure. The data served as one of the latest pieces of information that could influence the Federal Reserve at its monetary policy meeting next week.

The S&P 500 (^GSPC) fell 0.2% while the Dow Jones Industrial Average (^DJI) fell 0.2%. The tech-heavy Nasdaq Composite (^IXIC) wavered around the flat line. Shares of Nvidia (NVDA) and Tesla (TSLA) fell on Thursday after a decline in the previous session.

The producer price index for February rose 0.6%, higher than the expected increase of 0.3%. Investors were watching to see if inflation was cooling fast enough to satisfy Fed policymakers and announce interest rate cuts. That said, the market shrugged off signs of persistent inflation in Tuesday’s CPI report and remained firm in its hopes for a turn in monetary policy come summer.

Meanwhile, retail sales rose 0.6%, below estimates for a 0.8% increase. Eyes were closely watching Thursday’s data release for clues about the health of the U.S. economy ahead of the central bank’s two-day meeting next week.

In the case of commodities, the oil rally continued to grow after the IEA warned that supply would be delayed this year and US reserves were reduced. WTI crude oil futures (CL=F) traded just above $81 a barrel and hit their highest levels since November, while Brent crude futures (BZ=F) rose above $85.

On the corporate front, shares of Fisker (FSR) plunged more than 40% following a Wall Street Journal report that the electric vehicle maker is exploring filing for bankruptcy.

Live6 updates

  • Trending Tickers on Thursday

    Microsoft (MSFT)

    Microsoft stock was the number one trending stock on Yahoo Finance on Thursday. Shares of the tech giant hit an all-time high, rising more than 2% to trade just above $426 per share.

    So far this year, shares are up about 15%.

    Robin Hood (HOOD)

    Shares of Robinhood Markets rose more than 7% on Thursday after the brokerage platform posted strong growth in assets under custody in February, signaling momentum in stock and cryptocurrency trading.

    Assets under custody (AUC) increased 16% in February from the previous month to $118.7 billion.

    Fisker (FSR)

    Fisker shares plunged more than 50% on Thursday after The Wall Street Journal reported that the electric vehicle startup is exploring the possibility of bankruptcy. The report comes two weeks after the company warned about “its ability to continue as a going concern” and announced a 15% workforce reduction.

  • Fed’s cautious approach to cutting rates bolstered by new inflation reading

    New evidence of persistent inflation released Thursday will likely reinforce the Federal Reserve’s cautious approach to rate cuts and could raise doubts about whether interest rates will stay elevated longer than expected in 2024.

    Yahoo Finance’s Jen Jennifer Schonberger reports:

    “Given the tighter-than-expected nature of inflation, it’s going to be very difficult for the Fed to justify a near-term rate cut,” Stifel’s Lindsey Piegza told Yahoo Finance Live on Thursday. “Our base case is that the Federal Reserve will wait until the second half of the year before initiating a policy change.”

    Thursday’s new inflation reading came from the Labor Department’s Producer Price Index, which tracks the prices companies pay to make products and services.

    The index rose 0.6% from January to February, compared to a 0.3% increase the previous month. So-called “core” producer prices, excluding volatile food and energy costs, rose 0.3% month over month. The Federal Reserve keeps a close eye on underlying prices.

  • Oil gains on falling inventories and drone attacks on Russian refineries

    Oil rose more than 1% on Thursday, adding to the previous session’s gains amid falling inventories and continued drone attacks on Russian refineries.

    On Tuesday, West Texas Intermediate (CL=F) was hovering just above the $81 per barrel level, while Brent (BZ=F), the international benchmark price, was trading above $85 per barrel.

    Data from the Energy Information Administration showed a drop in U.S. crude oil inventories last week.

    The escalation of drone attacks on Russian refineries in the wake of the war between Ukraine and Russia in recent days has also affected oil markets.

  • Stocks fall on higher-than-expected inflation

    Shares opened higher but quickly turned negative in early trading.

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

    Nvidia (NVDA) opened lower for the second day in a row. Shares of the chipmaker, along with Tesla (TSLA), dragged stocks lower on Wednesday.

    The producer price index for February rose 0.6%, higher than the expected increase of 0.3%. Investors were viewing the release as the last major data ahead of next week’s key Federal Reserve policy meeting.

  • Stocks rise slightly despite higher-than-expected inflation

    Stocks rose Thursday despite higher-than-expected wholesale inflation.

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

    Nvidia (NVDA) opened lower for the second day in a row. Shares of the chipmaker, along with Tesla (TSLA), dragged stocks lower on Wednesday.

    The producer price index for February rose 0.6%, higher than the expected increase of 0.3%. Investors were watching the release amid expectations that Fed policymakers will reiterate their intention to cut rates sometime this year after next week’s Fed meeting.

  • Retail sales rebound

    Retail sales recovered in February after experiencing their steepest decline in almost a year the previous month.

    Retail sales increased 0.6% in February compared to the previous month, according to Census Bureau data. Economists expected a 0.8% increase in spending, according to Bloomberg data. January retail sales previously recorded a surprising 1.1% decline.

    February sales, excluding cars and gas, rose 0.3%, in line with estimates.

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