Stocks fall as bond yields rise on inflation worries.

From Nasdaq:

Stocks closed lower on Friday, with the S&P 500 down 0.65%, the Dow down 0.49%, and the Nasdaq 100 down 1.15%. Inflation concerns pushed the 10-year T-note yield higher after a surprising increase in the US Feb import price index. Corporate news, like Jabil cutting forecast, also weighed on the market.

Unexpected swings in stocks were seen on Friday due to quarterly expiration. The US Mar Empire manufacturing survey showed weaker conditions. Despite stronger-than-expected manufacturing production, consumer sentiment unexpectedly fell. Market expectations for Fed rate cuts are diminishing, with the chance of a rate cut shrinking for upcoming meetings.

Treasury yields rose as T-notes fell to a 2-week low. European bond yields also increased. The ECB may start easing monetary policy as Eurozone inflation may reach the 2% target. France’s CPI was revised upward, while Italy’s was revised downward. In the US, Jabil and Adobe led stock losers after cutting forecasts.

Stock movers included Ulta Beauty, Amazon, Microsoft, Alphabet, Apple, Meta Platforms, making tech stocks dip. Chipmakers were hit after news of China encouraging local purchases. Salesforce dropped due to insider selling, while Abbott fell after a lawsuit. Costar Group and Steel Dynamics gained after positive forecasts.

Rivian Automotive, Intuitive Surgical, Stellantis NV, Madrigal Pharmaceuticals, Paccar, and Cummins saw gains. Micron Technology and Marathon Petroleum also closed higher. In earnings news, Smartsheet Inc, Bit Digital Inc, and other companies reported results. Market volatility and various news impacted trading throughout the day.



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