Wall Street Weakens as Market Awaits Fed Decision
US stocks fell on Wednesday (February 18th) after producer inflation data beat expectations, while market participants held positions ahead of the Federal Reserve's interest rate decision. The Dow Jones Industrial Average fell 351 points, or 0.8%, the S&P 500 fell 0.5%, and the Nasdaq Composite Index fell 0.5%.
The producer price index (PPI), which measures wholesale price changes, rose 0.7% in February—well above the consensus estimate of 0.3%. This data confirms that inflation was already fragile even before the Iran war triggered a surge in oil prices, reinforcing concerns of stagflation.
Todd Schoenberger, CIO of CrossCheck Management, attributed the hotter-than-expected figures primarily to the impact of tariffs, with metal prices, industrial inputs, and manufacturing costs also rising. He said these pressures are structural and could potentially impact monetary policy into the third quarter.
Schoenberger also added that the increase in energy prices since the Iran war has not yet been fully reflected in the data, so the market is bracing for potential price pressures that could flow through to consumers.
Source: Newsmaker.id
