U.S. stocks fell on Thursday following the release of big inflation numbers that were better than expected. The reading 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 0.4%. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, fell 0.5%. Nvidia (NVDA) and Tesla (TSLA) stock prices both fell more than 4%, continuing declines from the previous session.
The producer price index rose 0.6% in February from the previous month, exceeding expectations for a 0.3% rise. Investors were watching whether inflation cooled quickly enough to satisfy Fed policymakers and threaten a rate cut.
Markets ignored signs of persistent inflation in Tuesday's CPI report and held firm to hopes of a policy shift in the summer, but that calculus may be changing. Forty percent of traders expect the Fed to keep interest rates at current levels through June, up from about 25% a week ago, according to CME Group's FedWatch tool.
Meanwhile, retail sales rose 0.6%, missing the expected 0.8% increase but still showing a recovery from January's decline.
In primary products, 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 $81 a barrel, the highest since November, while Brent crude oil futures (BZ=F) rose above $85.
On the corporate side, Fisker (FSR) stock plummeted more than 40% following a Wall Street Journal report that the electric vehicle maker was considering filing for bankruptcy.
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