STORY: U.S. stocks fell on Friday as better-than-expected producer price data appeared to dash any remaining hopes for an imminent rate cut by the Federal Reserve.
The Dow Jones Industrial Average fell nearly four-tenths of a percent, the S&P 500 fell nearly half a percent, and the Nasdaq fell eight-tenths of a percent.
After five consecutive weeks of gains, all three indexes fell for the week.
Producer prices rose more than expected in January, according to a Labor Department report, which, combined with a rise in the consumer price index a few days earlier, raised concerns that inflation is accelerating after months of sluggish inflation. It has increased.
But Brian Bendig, president of MJP Wealth Advisors, said the latest economic indicators, including Friday’s consumer sentiment numbers that remain optimistic, show the economy is still heading in the right direction. said.
“Overall, our job market is still very healthy and we still have publicly traded companies because we are still in the midst of earnings, which tells us that earnings will increase later this year. And while there’s still an economic backdrop that reminds us that Fed officials intend to cut rates later this year, they need to gain a little more confidence that inflation will continue to decline year over year in response. There just is. I mean, overall, I don’t think this is going to change the economics of the market or the economy much. And heading into the weekend, I think that’s a sign of good news.”
In earnings news, Applied Materials rose nearly 6.5% after the semiconductor equipment supplier said it expected second-quarter earnings to beat expectations on strong demand for advanced chips used in AI. Did.
Roku’s stock price fell nearly 24% on expectations that losses would widen in the first quarter.
Cryptocurrency exchange Coinbase Global posted its first quarterly profit since 2021, rising about 9%.
DoorDash stock also fell 8% after the delivery company said it expected its quarterly profit to be lower than expected due to rising labor costs.
