New York, NY – US stocks stumbled on Thursday after an initial rise when a report revealed higher-than-expected wholesale inflation figures. The data could potentially impact the Federal Reserve’s upcoming policy meeting decisions.
The S&P 500 and the Dow Jones Industrial Average both slid, with the tech-heavy Nasdaq 100 also experiencing a decline. The drop was attributed to Nvidia and Tesla’s negative performance the previous day.
In February, the producer price index exceeded expectations by rising 0.6%, sparking concerns about inflation levels and the potential need for interest rate adjustments. Despite signs of sticky inflation in recent reports, investors remained hopeful for a policy shift by the summer.
Meanwhile, retail sales data showed a 0.6% increase, falling short of the anticipated 0.8% rise. These figures are closely monitored for insights into the overall health of the US economy in anticipation of the Federal Reserve meeting.
In the commodities market, oil prices continued to rise as supply struggles and decreasing US stockpiles drove up prices. WTI crude futures edged above $80 per barrel, reaching levels not seen since November, while Brent crude futures approached $85.
On the corporate front, Fisker’s stock took a hit following reports that the electric vehicle maker is exploring the possibility of a bankruptcy filing, causing shares to plummet nearly 40%.
Overall, the market’s reaction to the latest data releases suggests a cautious approach by investors, who are closely monitoring economic indicators ahead of the Federal Reserve meeting next week. The potential impact of inflation and interest rate policies remains a key concern for market participants as they navigate current market conditions.