Markets Brace for Inflation Update

Stocks were mostly flat, with S&P 500 only moving a fraction of a point
By Newser Editors and Wire Services
Posted Apr 11, 2023 3:53 PM CDT
Stocks Close Flat Ahead of Crucial Inflation Update
An NYSE sign is seen on the floor at the New York Stock Exchange in New York, Wednesday, Feb. 22, 2023.   (AP Photo/Seth Wenig, File)

Stocks closed mostly flat on Wall Street Tuesday, with stocks and bonds making modest moves ahead of an anticipated update on consumer inflation and other reports later in the week. The S&P 500 had its smallest one-day move in more than a year, slipping 0.17 points, or less than 0.1%, to 4,108.94. Most of the stocks in the index rose, as did the Dow Jones Industrial Average, which gained 98.27, or 0.3%, to 33,684.79, the AP reports. The Nasdaq composite slipped 52.48, or 0.4%, to 12,031.88.

The biggest immediate question for Wall Street has been whether the Federal Reserve will keep hiking interest rates in its attempt to get high inflation under control. It’s already raised rates at a furious pace over the last year, enough to slow some areas of the economy and for strains to appear in the banking system. That’s why markets are gearing up for Wednesday’s report on inflation. Economists expect it to show inflation slowed to 5.2% in March from 6% in February. That would mean continued progress since inflation peaked last summer, but it would also still be well above the Fed’s target. A reading that’s higher than expected would likely bolster traders’ expectations that the Fed will raise rates by another quarter of a percentage point at its next meeting in May.

CarMax jumped 9.6% after reporting stronger profit than analysts expected for its latest fiscal quarter, which ended Feb. 28. It had one of the biggest gains within the S&P 500. On the losing end was Moderna, which fell 3.1% after it said its potential flu vaccine needs more study in a late-stage clinical trial. Big Tech stocks were also weak. They and other high-growth stocks are seen as the most hurt by rising interest rates, and a 2.3% drop for Microsoft was the heaviest drag on the S&P 500.

(More stock market stories.)

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