From Nasdaq:

U.S. stocks were mixed on Friday, with the Nasdaq showing the largest decline, after a report revealed producer prices increased more than expected in January, signaling potential inflation. The hotter-than-expected producer prices frustrated market speculation of imminent interest rate cuts by the U.S. Federal Reserve.

The Labor Department’s report gave Fed policymakers fresh validation for a wait-and-see approach to cutting rates after a hot consumer prices report. A slump in January retail sales did provide some relief on Thursday.

Investors found a theme of ‘higher for longer’ with the continuing market narrative. Two Fed officials are cautious about policy changes. Atlanta Fed President Raphael Bostic is open to lowering rates, but believes more data is needed, while San Francisco Fed President Mary Daly believes more work is needed.

Robust corporate earnings and a surge in enthusiasm around the potential for artificial intelligence have helped the S&P 500 close above the 5,000-point mark for the fourth time this year. However, most megacap stocks dropped, with Meta Platforms falling 2.3%.

Applied Materials jumped 8.2% after the semiconductor equipment supplier forecast better-than-expected second-quarter revenue. Vulcan Materials gained 6.1% after forecasting a higher full-year profit, while Roku slumped 22.3% after forecasting a bigger first-quarter loss.

Sources:
– Monthly change in US Producer Price Index: https://reut.rs/3SX7WUp
– Reporting by Amruta Khandekar and Ankika Biswas in Bengaluru; Editing by Maju Samuel and Chizu Nomiyama
– By Carolina Mandl, Amruta Khandekar, and Ankika Biswas
– Amruta Khandekar: mailto:[email protected]
– Disclaimer: The views and opinions expressed herein do not necessarily reflect those of Nasdaq, Inc.



Read more: US STOCKS-Wall Street muted after hot inflation douses early rate-cut hopes