Stock futures dropped as Wall Street anticipated a new inflation report, causing the Dow Jones Industrial Average to slide by 0.25%, S&P 500 futures to lose 0.2%, and Nasdaq-100 futures to also decrease by 0.2%. The upcoming release of the producer price index forecasted wholesale prices to grow by 0.3% in March, with a slightly lower increase when excluding food and energy. This news came after a volatile day for the market following a stronger-than-expected consumer price index reading that raised concerns about potential rate cuts by the Federal Reserve.
The unexpected inflation data prompted Goldman Sachs chief economist Jan Hatzius to adjust his firm’s rate cut projections, reducing it from three to two in 2024 and now predicting the first cut to occur in July. Despite the uncertainty in the market, Hatzius remains optimistic about rebalancing the labor market and reducing inflation over time. The previous market selloff led to the Dow Jones Industrial Average declining by 1.1%, the S&P 500 dropping by 0.95%, and the Nasdaq Composite sinking by 0.84%. Earnings season also continues with reports expected from CarMax, Fastenal, and Constellation Brands, setting the stage for upcoming big bank earnings from JPMorgan, Wells Fargo, and Citigroup.
