The Dow Jones Industrial was up 0.10 percent at the close. and amounted to 39,043.32 points. The S&P 500 lost 0.19% at the end of the day. and amounted to 5,165.31 points. The Nasdaq Composite fell 0.54%. and closed the session at 16,177.77 points. The Russell 2000 index of small-cap companies gained 0.30%. and amounted to 2,071.71 points. The VIX volatility index fell by 0.65 percent, to 13.75 points.
People are still cautious about the underlying data
Nvidia's shares fell by more than 1 percent. Other technology companies followed suit. Meta Platforms lost almost 1%, and Apple dropped 1.2%. The index grouping the information technology sector fell by approximately 1.1%.
“Investors are taking profits in the tech industry after big (Tuesday's) gains, but sentiment towards artificial intelligence and data centers is as strong as ever and there is still a lot of anticipation for the Nvidia GTC conference,” Vital Knowledge founder and CEO Adam Crisafulli wrote on Wednesday.
Investors are analyzing Tuesday's CPI data in the US. US consumer prices rose 3.2% in February. on a y/y basis, and m/m increased by 0.4%. Expected +3.1%. y/y and +0.4 percent mdm.
“I think we were relieved by yesterday's CPI reading, but people are still cautious about the underlying data. In the short term, the narrative around the Federal Reserve will be a top issue,” said Ayako Yoshioka, senior portfolio manager at Wealth Enhancement Group.
Wall Street will remain hyper-vigilant to how the central bank handles monetary policy at its next meeting, which begins March 19, Yoshioka noted, where she expects Fed Chair Jerome Powell to reiterate that policy is data-driven and present a more neutral tone.
“When you look below the surface, things are a little stickier than people would expect,” Yoshioka noted, pointing to rising service costs in the latest CPI print.
It will be difficult for the Fed not to remain hawkish at the next meeting
Analysts still believe that the US Federal Reserve may start cutting interest rates. summer, despite a rise in U.S. consumer prices in February on higher gasoline and rent costs, suggesting some inflation stickiness. US interest rate futures fell slightly, suggesting around 68%. chances of reducing interest rates. in June. The next Fed meeting will be March 19-20.
“It will be difficult for the Fed not to remain hawkish at its next meeting because the fight against inflation clearly has not been won yet. The latest reading actually forces attention to the risk that inflation remains persistently high, which has a huge impact on all investment portfolios “Markets may be underestimating the impact of sticky inflation as they continue to aggressively price in a June rate cut,” said Justin Onuekwusi, chief investment officer at St. James's Place.
“While February segment CPI data was mixed, we believe the U.S. economy remains in good shape and is heading for a soft landing,” Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in the report.
Tesla's stock dropped by 4.5%. after Wells Fargo downgraded the electric vehicle maker to “underweight” from “equivalent.” Dollar Tree lost more than 14%. after the discount chain announced it would close nearly 1,000 stores in the first half of the year and suffered a net loss for the previous quarter, impacted by a goodwill impairment charge of more than $1 billion.
Intel dropped over 4%. after media reports that the Pentagon withdrew its plan to give the company USD 2.5 billion for a grant for components. Cryptocurrency stocks such as MicroStrategy, Marathon Digital and Bit Digital rose several percent each, and the price of bitcoin rose to another record high. GE HealthCare Technologies lost almost 4%. in connection with the reduction of General Electric's shares in this company producing medical equipment.
On the oil market, WTI contracts for April are up by 2.80%. to USD 79.73 per barrel, and May Brent futures increase by 2.60%. up to USD 84.05/b.
