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Investing.com– U.S. stocks fell Friday, with hotter-than-expected inflation data putting markets on edge ahead of next week’s Federal Reserve meeting.
As of 9:35 a.m. ET (1:35 p.m. GMT), the index was down 25 points, or 0.5%, down 102 points, or 0.6%, and down 50 points, or 0 ,1%.
Sticky inflation data has brought interest rate fears back into play
Data released late Friday showed the United States rose 0.3% last month after an unrevised 0.8% jump in January, broadly in line with expectations. In the 12 months to February, import prices fell 0.8% after falling 1.3% in January.
Government data this week showed prices rose sharply for a second straight month in February, raising concerns that the Federal Reserve will need to keep rates higher longer to reduce inflation.
While the Fed is not expected to raise interest rates further, markets were seen reducing the potential for an interest rate cut in June following hot inflation data.
According to the CME’s FedWatch Tool, traders curbed bets on a June rate cut by the Fed to 60% from 73% last week.
They are expected to keep interest rates unchanged next week, and the central bank’s dot plot at the end of next Wednesday’s policy meeting is now crucial to guessing how cautious officials will be.
Adobe sinks on weak guidance
Adobe Systems (NASDAQ:) fell 12% after posting weaker-than-expected second-quarter revenue guidance due to increased competition and weak demand for its artificial intelligence offerings.
Ulta Beauty (NASDAQ:) tumbles 7.8% after the beauty retailer forecast full-year profits below Wall Street estimates as high supply chain costs and increased promotions have damaged its margins.
Hibbett Sports (NASDAQ:) shares fell 5.4% after the athletic apparel and footwear retailer missed analysts’ expectations for the fourth quarter and offered a lackluster outlook for the future.
Crypto stocks like MicroStrategy Incorporated (NASDAQ:), Marathon Digital (NASDAQ:) and Global Coinbase (NASDAQ:) all retreated after the sharp decline from recent all-time highs.
Oil is set to post weekly gains
Oil prices fell on Friday but were on track to post gains of about 4% this week after a bullish IEA report and a larger-than-expected drop in U.S. inventories, suggesting improved demand in the largest consumer of fuel of the world.
At 9:35 a.m. ET, U.S. crude futures were trading 0.5% lower at $80.85 a barrel, while the Brent contract fell 0.6% to $84.94 a barrel, with both contracts down from four-month highs.
On Thursday it raised its oil demand forecast for 2024 for the fourth time since November, saying global oil demand will increase by 1.3 million barrels per day this year, up 110,000 barrels per day from last month.
Both contracts had risen earlier this week to their highest levels since late November after an unexpected drop in U.S. oil and gasoline inventories indicated demand in the world’s largest fuel consumer was in jeopardy. recovery.
(Ambar Warrick contributed to this article.)