Stocks Slide After Hotter-Than-Expected PPI as Traders Await the Fed
U.S. stocks fell on Wednesday after a hotter-than-expected Producer Price Index (PPI) report, while investors stayed cautious ahead of the Federal Reserve’s upcoming rate decision.
The Dow Jones Industrial Average dropped 401 points, or 0.9%. The S&P 500 declined 0.5%, and the Nasdaq Composite also fell 0.5%.
The PPI—which tracks changes in wholesale prices—rose 0.7% in February, well above the 0.3% estimate from economists polled by Dow Jones. The data suggested inflation pressures were already building before the Iran war began—an event that has amplified stagflation fears as oil prices surge.
“The hotter-than-expected number is specific to tariffs,” said Todd Schoenberger, CIO at CrossCheck Management, noting that metals, industrial inputs, and manufacturing costs are all rising. “This is structural inflation, not temporary, and is likely going to impact monetary policy deep into the third quarter.”
“Add in the hotter energy prices we’ve seen since the Iran war began, which have yet to show in these reports, and Wall Street is bracing for rapidly rising prices that will clearly flow down to the consumer level,” Schoenberger added.
In energy markets, oil climbed further on the day. WTI futures rose about 3% to around $99 per barrel, while global benchmark Brent gained roughly 5% to about $109 per barrel.
Source : Newsmaker.id
