Stock futures fell as Wall Street looked ahead to the second major inflation report.
Linked futures contracts Dow Jones Industrial Average It fell by 90 points, or about 0.2%. S&P 500 futures It also lost 0.2%. Nasdaq-100 futures Decreased by 0.2%.
Stocks reached sell-off mode on Wednesday as investors took stock of March's hot inflation reading that fueled concerns that the Federal Reserve may implement smaller interest rate cuts than expected. Minutes from the Fed's meeting last month also showed that some officials remain concerned about inflation's path toward the central bank's 2% target.
The surprise result – in which consumer prices rose 0.4% in March and 3.5% from a year earlier – prompted Goldman Sachs chief economist Jan Hatzius to revise the company's call for two rate cuts from three in 2024. He now sees a reduction The first rate occurs in July.
“I'm optimistic that we're rebalancing the labor market, and we'll get inflation down over time — to me none of those things have changed,” he told CNBC's “Closing Bell” on Wednesday. “However, what has changed is the timing of the Fed’s adjustment because that will depend a lot on the monthly inflation news, which has clearly been disappointing.”
the Dow Jones Industrial Average It led losses on Wednesday, falling 1.09%, while the index fell Standard & Poor's 500 Decreased by 0.95% Nasdaq Composite Decreased by 0.84%. Ten of the 11 sectors in the S&P 500 finished the session in negative territory, with real estate bearing the brunt of the selling pressure and posting a decline of more than 4%. The interest rate on the 10-year Treasury note rose to 4.5%, while the yield on the two-year Treasury note rose to nearly 5%.
The next major inflation checks in the market will come on Thursday with the March Producer Price Index. Economists polled by Dow Jones expect wholesale prices to grow 0.3% in March, and 0.2% excluding food and energy. Separately, weekly unemployment claims are also scheduled to be filed before the bell.
The early stages of earnings season continue on Thursday, with results coming in from… Carmax, Fixed And Constellation brands Before the bell. The unofficial start of this period begins with earnings for big banks from JPMorgan, Wells Fargo and Citigroup on Friday.
