Stocks decline as CPI data suggests Fed rate cuts, sparking economic concerns.

From Yahoo Finance: 2024-09-11 10:19:20

Stocks tumbled as inflation report points to gradual rate cuts by the Federal Reserve, diminishing hopes of a soft economic landing. S&P 500, Nasdaq 100, and Dow Jones Industrial Average all saw declines. Treasury two-year yields rose, swap traders anticipate 25-basis-point cut. The core CPI rose 0.3% in August, exceeding expectations. This increases pressure on Fed Chair Powell to deliver a 50 basis-point cut. Despite the higher core CPI, Fed likely to opt for 25 bps cut next week. Inflation report supports slow cutting cycle, with focus shifting to earnings and election cycle implications.



Read more at Yahoo Finance: Stocks Get Hit After CPI Data Fuel Economic Angst: Markets Wrap