Nasdaq, S&P, Dow Drop as Core CPI Raises Rate Cut Concerns
Wednesday, 11 September 2024, 09:36
Market Reactions to Core CPI Data
On Wednesday, major U.S. stock indices Nasdaq, S&P, and Dow recorded considerable declines prompted by new data from the core consumer price index (CPI). This inflation index, which excludes volatile items like food and energy, came in above analysts' expectations, leading to a sharp revision in the odds of a super-sized rate cut.
Impact on Federal Reserve Policy
- The core CPI result has increased concerns that the Federal Reserve may pause easing measures.
- Market analysts are now recalibrating their forecasts regarding the interest rate trajectory.
- The overall sentiment in financial markets has turned cautious as investors digest these implications.
Investors should remain vigilant as economic indicators will continue to shape market expectations.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.