The US stock market came under some pressure and saw significant volatility as traders reacted to the release of the Producer Price Index (PPI) today, which came in hotter than expected.
This confirms earlier Consumer Price Index (CPI) readings, indicating persistent inflationary pressures.
However, market consensus continues to point to an interest rate cut in June for the moment as attention could turn to the Federal Reserve’s policy meeting scheduled for March 19-20.
Major US indices have stagnated to a certain extent during the previous trading session and traders could take a more cautious approach ahead of Chair Jerome Powell’s speech next week, although the general outlook remains bullish.
The technology sector was seeing positive performances with Microsoft seeing new highs.
However, Nvidia was moving lower and could continue to see price corrections after its huge gains since the beginning of the year while Tesla faced continued pressure, in a second week of losses, following a downgrade by Wells Fargo which reduced its price target.
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