Wall Street main indexes declined for the third consecutive session this week, and the Federal Reserve chose not to change index rates next week

Treasury bonds

Wall Street main indexes declined for the third consecutive session this week, and the Federal Reserve chose not to change index rates next week.

Wall Street edged lower on the first session of the end week of March 15. The Fed meeting has a significant impact on the stock market today, and the main reason for this week’s three concurrently declined sessions is the increasing inflation rate in the U.S.

As of 11:40 a.m. ET, New York time, the S&P 500 benchmark was down by 0.73% and stood at 5,134.90 basis points. The tech-heavy composite Nasdaq fell by 1.11% after the U.S. sent its decision to ban all tok-tok access in the U.S., which has affected stock. Plus, the Dow Jones futures were also down by 0.48% to 38.719.50 basis points.

For now, worries have increased due to increasing inflation in the past two months. At the same time, the U.S. Federal Reserve is still digesting the recent report, which includes both the CPI and PPI reports. Consumer and producer prices both rose strongly for the second consecutive month in February, raising concerns about inflation. The Federal Reserve may need to maintain higher interest rates for longer to address inflation concerns.

While today’s released report has added some depth to the market worries and the position of the central banks about these concerning increases, U.S. import prices increased by 0.3% last month, following a previous 0.8% jump in January. Import prices dropped by 0.8% in the 12 months through February, compared to a 1.3% decline in January. Based on these recent reports, the market explanation has changed in terms of when the Fed will cut interest rates. Early estimates had a 70% probability that the Federal Reserve would cut its key interest rates in June. However, in light of the past two days, report that the probability just decreased by more than 30% to its current estimation of 40%.

For now, it is unlikely that the Fed will change interest rates next week because market uncertainty remains an important factor.

While the Treasury yields market saw a mixed ending week session, the 10-year Treasury yields were up by 0.02% to 4.926%. The fixed 30-year mortgage rates were down due to lower-than-expected retail sales. The report on Thursday shows that sales in the month of February came in shorter than market expectations. The 30-year bonds declined by 0.25%, while both the five-year and three-month bonds saw an average increase of 0.30%.

Moving to the individual stock market, Adobe Systems saw a 12% decline in stock value due to weaker-than-expected second-quarter revenue guidance, attributed to increased competition and weak demand for its AI offerings. Ulta Beauty (NASDAQ: ULTA) shares fell 7.8% due to lower-than-expected full-year profit forecasts. And Hibbett Sports (NASDAQ: HIBB) stock declined 5.4% as it missed fourth-quarter analyst expectations.

Meantime, in the oil market, the U.S. West Texas Intermediate was down by 0.18% to $81.12 per barrel. Berent crude pil declined by 0.06% to $85.5 per barrel.


Written by Editor

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