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Stocks sold off on Wednesday after new U.S. economic data as well as comments from the Federal Reserve chief stoked concerns about persistent inflation in the country.
The Dow Jones Industrials let go of 768.45 points, or 1.6%, to close Wednesday at 46,224.81, reaching a new low for the year. With its month-to-date drop now at more than 5%, the blue-chip index is on pace for its worst month since 2022.
The S&P 500 index sagged 91.33 points, or 1.4%, to 6,624.76.
The NASDAQ stumbled 327.11 points, or 1.5%, to 22,152.42.
The Fed kept its fed funds rate in a range between 3.5% to 3.75%, saying in its post-meeting statement that the “implications of developments in the Middle East for the U.S. economy are uncertain.”
The central bank signaled that it still expects one cut this year, however.
With respect to earnings, eyes are on Micron Technology, as the chipmaker is slated to release its latest quarterly results after the bell Wednesday. The stock has been on a tear this year, rallying nearly 62% amid soaring demand for high-bandwidth memory.
The producer price index — which tracks the change in wholesale prices — rose 0.7% in February, well above the 0.3% economists polled by
Dow Jones had estimated. The report shows that inflation was already in a precarious spot prior to the Iran war breaking out — an event that has heightened stagflation fears amid rising oil prices.
Prices for the 10-year Treasury settled, zooming yields to 4.27% from Tuesday’s 4.20%. Treasury prices and yields move in opposite directions.
Oil prices gained $2.40 to $98.61 U.S. a barrel.
Gold prices stumbled $159.80 to $4,848.70 U.S. an ounce.
