WALL Street stocks fell on Wednesday (Apr 10) after US inflation data topped estimates, dampening expectations for imminent interest rate cuts.
The much-anticipated data showed US consumer prices in March were up 0.4 per cent from February and 3.5 per cent from the year prior, both slightly above the expected level.
Major indices spent the entire day in the red.
“The stock market is trying to recalibrate what the world looks like if get two or fewer rate cuts this year,” said Art Hogan of B Riley Financial.
The Dow Jones Industrial Average dropped 1.1 per cent to 38,461.51.
The broad-based S&P 500 shed 1.0 per cent to 5,160.64, while the tech-rich Nasdaq Composite Index declined 0.8 per cent to 16,170.36.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The inflation data is heavily scrutinised by the Federal Reserve, which had confirmed plans last month for three interest rate cuts in 2024.
Minutes of the meeting released Wednesday showed that “some” policymakers said recent inflation figures “should not be discounted”, while others perceived the increase as the result of “seasonality”.
But futures markets shifted on Wednesday following the inflation data and now see only a slim chance of a rate cut in June.
Among individual companies, Delta Air Lines fell 2.7 per cent despite reporting better-than-expected earnings and forecasting a record second quarter thanks to continued robust travel demand.
Before Wednesday’s report, Delta shares had risen 18 per cent in 2024. AFP
