Highlights
Stocks retreated Friday after another hotter than expected inflation report. The selloff was limited by resilience in selected megacaps and the S&P 500 found support around 5000.
The Dow Jones industrial average slipped 0.4 percent, the S&P 500 fell 0.5 percent, and the Nasdaq lost 0.8 percent. US Treasury yields, the dollar and oil prices all rose.
Bond yields rose anew and stocks fell back after producer price figures showed prices rose much more than expected in January. This followed disappointing consumer price data earlier in the week. Investors have been obliged to delay expectations for Federal Reserve rate cuts from the first half of the year the second half.
Fed officials this week have generally poured cold water on near-term rate cut hopes. San Francisco Fed President Mary Daly on Friday was the latest to repeat the now-familiar line that more time and data are needed before the Fed can consider rate cuts.
Risk appetite Friday took another hit from an uptick in oil prices after a Hezbollah leader said the group would escalate its attacks against Israel.
In Friday's trading, strength in megacap favorites including Tesla, Amazon and Nvidia helped the major averages limit their declines. Among sectors, worst off were communications services, consumer discretionary and industrials. Best performers included energy, consumer staples, health care and materials.
The Dow Jones industrial average slipped 0.4 percent, the S&P 500 fell 0.5 percent, and the Nasdaq lost 0.8 percent. US Treasury yields, the dollar and oil prices all rose.
Bond yields rose anew and stocks fell back after producer price figures showed prices rose much more than expected in January. This followed disappointing consumer price data earlier in the week. Investors have been obliged to delay expectations for Federal Reserve rate cuts from the first half of the year the second half.
Fed officials this week have generally poured cold water on near-term rate cut hopes. San Francisco Fed President Mary Daly on Friday was the latest to repeat the now-familiar line that more time and data are needed before the Fed can consider rate cuts.
Risk appetite Friday took another hit from an uptick in oil prices after a Hezbollah leader said the group would escalate its attacks against Israel.
In Friday's trading, strength in megacap favorites including Tesla, Amazon and Nvidia helped the major averages limit their declines. Among sectors, worst off were communications services, consumer discretionary and industrials. Best performers included energy, consumer staples, health care and materials.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
