By DAMIAN J. TROISE, AP Business Writer
Published: March 15, 2024, 7:51am
Updated: March 15, 2024, 8:08am
Stocks fell on Wall Street Friday and are on track for a mixed finish in a week that was heavy with reports showing that inflation, though broadly cooling, remains stubborn.
The S&P 500 fell 0.4% and is on track for a slight gain this week. The index set a record high on Tuesday, but has been mostly wavering since.
The Dow Jones Industrial Average fell 55 points, or 0.1%, and the Nasdaq composite fell 0.6%.
Technology stocks were the biggest weights sinking the market. Software maker Adobe slumped 13.9% after giving investors a weak revenue forecast.
A closely-watched report from the University of Michigan showed that consumer sentiment unexpectedly fell in March. Consumers became slightly less optimistic about the economy, but continue to expect inflation to come down further, a potential sign that consumer prices will come under control.
Inflation remains the big concern for Wall Street amid hopes for the Federal Reserve to start cutting interest rates. The Fed sharply raised interest rates starting in 2022 in an effort to tame inflation back to its 2% target. Inflation at the consumer level was as high as 9.1% in 2022.
A report on consumer prices this week showed inflation remains stubborn, ticking up to 3.2% in February from 3.1% in January. Another report on prices at the wholesale level also showed inflation remains hotter than Wall Street expected.
Other reports this week showed some softening in the economy, which bolstered hopes for a continued long-term easing of inflation.
Fed officials will give their latest forecasts for where they see interest rates heading this year on Wednesday, following their latest policy meeting. Traders are still leaning toward a rate cut in June, according to data from CME Group. The central bank has previously signaled that it expects three rate cuts in 2024. Lower rates would relieve pressure on the economy and financial system.
Bond yields edged higher. The yield on the 10-year Treasury rose to 4.31% from 4.29% late Thursday. The yield on the 2-year Treasury, rose 4.72% from 4.69%.
Markets in Europe mostly gained ground, while markets in Asia slipped.
