Traders
work
on
the
floor
of
the
New
York
Stock
Exchange
during
morning
trading
on
February
14,
2024
in
New
York
City.
Michael
M.
Santiago
|
Getty
Images
Stocks
slid
Friday
after
yet
another
hot
inflation
report
stoked
fears
that
Federal
Reserve
rate
cuts
may
not
arrive
until
later
than
anticipated
this
year.
The
S&P
500
fell
0.48%
to
end
at
5,005.57,
and
the
Dow
Jones
Industrial
Average
slid
145.13
points,
or
0.37%,
settling
at
38,627.99.
The
Nasdaq
Composite
lost
0.82%
to
finish
at
15,775.65.
All
three
major
indexes
broke
their
five-week
winning
streaks
to
end
the
week
in
the
negative.
The
S&P
500
ended
the
week
lower
by
0.42%,
while
the
Dow
slipped
0.11%.
The
Nasdaq
tumbled
1.34%.
The
producer
price
index
for
January,
a
measure
of
wholesale
inflation,
increased
0.3%.
Economists
polled
by
Dow
Jones
had
anticipated
a
gain
of
0.1%.
Excluding
food
and
energy,
core
PPI rose increased 0.5%,
higher
than
the
expectations
for
a
0.1% advance.
The
10-year
Treasury
yield
spiked
above
4.3%
following
the
hot
PPI
reading.
At
one
point,
the
2-year
Treasury
yield
topped
4.7%,
the
highest
since
December.
It’s
been
a
roller-coaster
week
for
stocks,
with
investors
carefully
assessing
the
direction
of
the
U.S.
economy
and
when
the
Federal
Reserve
may
decide
to
lower
rates.
On
Tuesday,
the
Dow
posted
its
biggest
daily
decline
in
nearly
a
year
after
January’s
headline
consumer
price
index
reading
came
in
at
3.1%,
higher
than
the
2.9%
economists
polled
by
Dow
Jones
were
expecting.
The
market
shook
off
the
report
the
next
two
days,
with
the
S&P
500
rebounding
on
Thursday
to
close
at
yet
another
record
high.
But
Friday’s
wholesale
inflation
report
added
to
concerns
the
Fed
may
have
to
wait
until
later
in
the
year
before
it
starts
cutting
rates.
Greg
Bassuk,
chief
executive
officer
at
AXS
Investments,
told
CNBC
that
investors
should
brace
for
more
near-term
volatility
ahead.
Until
recently,
most
investors
were
confident
“that
rate
cuts
would
start
in
the
first
half
of
the
year,
and
it’s
looking
more
likely
that
the
Fed
will
delay
until
the
second
half,”
he
said.
Bassuk
added:
“The
seesaw
market
is
really
reflective
of
this
tug-of-war
between
high
sticky
inflation
—
which
suggests
no
near-term
rate
cuts
—
and
strong
earnings
and
other
signs
of
a
robust
economy,
which
underscores
investors
belief
that
there’s
more
growth
ahead
for
stocks.”
Applied
Materials
popped
6%
Friday
on
stronger-than-expected
earnings.
Shares
of
food
delivery
service
DoorDash
dropped
8%
on
a
wider-than-expected
loss,
while
digital
advertising
company
Trade
Desk
popped
about
17%
after
topping
analysts’
fourth-quarter
revenue
estimates
and
offering
an
upbeat
outlook
for
the
first
quarter.
