The stock market was at risk of a three-day losing streak at the start of Friday’s session after the latest update on the Federal Reserve’s preferred inflation gauge continued to show stubborn price growth.
The Dow Jones Industrial Average was down 70 points, or 0.2%. The S&P 500 was down 0.3%. The Nasdaq Composite fell 0.5%.
The yield on the 2-year Treasury note was down to 3.99%. The 10-year yield dipped to 4.32%.
The core personal consumption expenditures price index, which excludes volatile food and energy prices, rose 0.4% in February. That was more than economists expected, sending stocks down and odds of a May rate cut lower.
“It looks like a ‘wait-and-see’ Fed still has more waiting to do,” writes Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management. “Today’s higher-than-expected inflation reading wasn’t exceptionally hot, but it isn’t going to speed up the Fed’s timeline for cutting interest rates, especially given the uncertainty surrounding tariffs.”
The White House’s latest tariff threats have weighed on markets in recent sessions. Though details are still unclear, the president’s reciprocal tariffs are set to go into effect on Wednesday.
