US stock markets experienced a dip on Thursday as investors reacted to a higher-than-expected inflation report. The S&P 500 and Nasdaq fell by approximately 0.3%, while the Dow Jones saw a slightly larger decline of around 0.4%. Tech giants Nvidia and Tesla were among the stocks hit hardest, with both companies seeing their shares drop by roughly 4%.
The Russell 2000 Index, which tracks small-cap stocks, tumbled about 2% as investors adjusted their expectations for a potential interest rate cut in June. This shift in sentiment came after the Producer Price Index revealed a 0.6% increase from the previous month, surpassing initial forecasts.
According to market analysts, there has been a notable shift in expectations regarding the Federal Reserve’s monetary policy. Approximately 40% of traders now anticipate that the Fed will maintain its current interest rate levels through June, up significantly from just 25% a week ago.
In economic news, retail sales experienced a modest 0.6% increase, falling short of expectations but showing a recovery from a decline in January. Meanwhile, oil prices surged following warnings from the International Energy Agency about supply shortages and a decrease in US stockpiles. WTI crude traded above $81 per barrel, while Brent crude surpassed $85.
On the corporate front, electric vehicle manufacturer Fisker saw its shares plummet by over 50% after reports emerged that the company was exploring a potential bankruptcy filing. The news sent shockwaves through the market, highlighting the challenges facing the automotive industry amid ongoing supply chain disruptions and economic uncertainty.
Overall, the market remains volatile as investors continue to navigate shifting economic indicators and corporate developments. Analysts advise caution and recommend closely monitoring market conditions in the coming weeks.
“Travel aficionado. Incurable bacon specialist. Tv evangelist. Wannabe internet enthusiast. Typical creator.”