Stocks on Wall Street took a hit on Friday, with the S&P 500 falling 0.4% and the Dow Jones Industrial Average dropping 0.1%. The Nasdaq composite also saw a decline of 0.6%. This mixed finish comes after a week filled with reports showing that inflation, while cooling slightly, remains a concern for investors.
Technology stocks were the main culprits behind the market’s decline, with software maker Adobe plummeting 13.9% after providing a disappointing revenue forecast. Additionally, a report from the University of Michigan revealed that consumer sentiment unexpectedly fell in March, indicating a slight decrease in optimism about the economy.
Inflation continues to be a major worry for Wall Street, as the Federal Reserve aims to curb rising prices by potentially cutting interest rates. Reports this week showed that inflation remains stubborn, with consumer prices ticking up to 3.2% in February. Despite some softening in the economy, traders are still anticipating a rate cut in June, as the Fed is expected to provide further guidance on their interest rate forecasts next week.
Bond yields saw a slight increase, with the 10-year Treasury yield rising to 4.31% and the 2-year Treasury yield climbing to 4.72%. While markets in Europe mostly saw gains, Asian markets experienced a slip in performance.
Overall, the week ended on a cautious note as investors continue to monitor inflation data and await further guidance from the Federal Reserve.
