US stock markets fell on Thursday following the release of a higher-than-expected headline inflation print. The reading served as one of the last pieces of data that could sway the Federal Reserve at its policy meeting next week.
The S&P 500 (^GSPC) fell 0.4%, while the Dow Jones Industrial Average (^DJI) fell 0.4%. The tech-heavy Nasdaq Composite ( ^IXIC ) fell 0.5%. Shares of both Nvidia ( NVDA ) and Tesla ( DSLA ) fell more than 4%, continuing declines from the previous session.
February's producer price index rose 0.6% from last month, beating expectations for a 0.3% increase. Investors were watching for inflation to cool fast enough to appease central bank policymakers and announce interest rate cuts.
That calculus could change, though, as markets downplay signs of sticky inflation in Tuesday's CPI report and cling to their belief that policy will remain central through the summer. As stated therein CME Group's FedWatch tool40% of traders now expect the central bank to keep interest rates on hold until June, up from 25% a week ago.
Meanwhile, retail sales rose 0.6%, missing estimates for a 0.8% rise, but indicating a rebound from a decline in January.
In commodities, oil's revived rally continued to build after the IEA warned that supply would lag this year and US inventories would shrink. WTI crude futures (CL=F) traded above $81 a barrel, touching their highest level since November, while Brent crude futures (BZ=F) climbed above $85.
On the corporate front, shares of Fisker ( FSR ) fell more than 40% after the Wall Street Journal reported that the EV maker was considering a bankruptcy filing.
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