S&P 500 Ends Down as Hot US Inflation Data Hints at Fewer Rate Cuts
The S&P 500 ended down on Wednesday after a hotter-than-expected U.S. inflation reading added to worries that the Federal Reserve would not cut interest rates anytime soon, while CVS Health and Gilead Sciences rallied after upbeat quarterly reports.
Nvidia (NVDA.O), and Amazon (AMZN.O), dipped, with the two AI computing heavyweights weighing on the S&P 500 (.SPX),.
U.S. consumer prices increased in January by the most in nearly a year and a half, reinforcing the Fed's message that it was in no rush to resume cutting rates.
The surge in prices offered a cautionary note to President Donald Trump's push for tariffs on imported goods, which economists have panned as inflationary.
Interest rate futures now suggest traders see about a 70% chance the Fed will reduce rates by another 25 basis points by the end of 2025, down from about an 80% chance on Tuesday, according to CME Fedwatch.
According to preliminary data, the S&P 500 (.SPX), lost 16.58 points, or 0.28%, to end at 6,051.92 points, while the Nasdaq Composite (.IXIC), gained 6.10 points, or 0.03%, to 19,649.95. The Dow Jones Industrial Average (.DJI), fell 224.97 points, or 0.50%, to 44,368.68.
Source : Reuters
