The US stock market ended with all three major indexes falling sharply. Photographed in New York in 2022 (2024 Reuters/Brendan McDermid/File Photo)
NEW YORK (Reuters) – All three major U.S. stock market indexes closed sharply lower. The March U.S. consumer price index (CPI) announced this morning exceeded market expectations, dispelling expectations that the U.S. Federal Reserve would cut interest rates as early as June.
March CPI increased by 3.5% compared to the same month last year. This accelerated from the previous month’s 3.2% rise, and was the largest increase since September last year. It also exceeded market expectations by 3.4%.See more
As a result, there is widespread belief that there is still a long way to go before the inflation rate returns to the Federal Reserve’s 2% target, and all three major stock indexes have fallen sharply.
Ryan Detrick, chief market strategist at Carson Group, said, “Given the sticky inflation statistics, there was a mentality of “analyze later and sell first,” and predicted not only when interest rate cuts would start, but also how many. He also pointed out that he had been pushed back.
Minutes of the March 19-20 Federal Open Market Committee (FOMC) meeting released by the Federal Reserve today suggest that progress toward curbing inflation may stall and interest rates may need to remain at current levels for a longer period of time. It turns out that he was concerned about sexuality.See more
Stock prices were also weighed down by the yield on the 10-year US Treasury note, which hit the 4.5% level, the highest level since November last year.
According to CME’s FedWatch, the market’s probability of a 25 basis point (bp) rate cut in June is 16.5%, a significant drop from 56.0% before the CPI announcement.
All 11 major sectors of the S&P 500 index, except for energy, fell. Interest rate sensitive real estate (.SPLRCR)New Tab, opens new tab has fallen significantly. Housing stocks (.HGX) New Tab, opens new tab fell the most since January 23rd, and the Russell 2000 (.RUT) New Tab, opens new tab, which focuses on small-cap stocks, fell the most since February 13th. Most large-cap growth stocks sold off, but Nvidia (NVDA.O) New Tab, opens new tab had a reversal, rising 2.0%. U.S.-listed shares of Chinese e-commerce giant Alibaba also rose 2.2%. Co-founder Jack Ma wrote an unusually long memo to employees expressing support for the company’s restructuring.See more
Declining issues outnumbered advancing issues on the New York Stock Exchange by a 5.93-to-1 ratio. On the Nasdaq, there were also many stocks with declines, with a ratio of 3.58 to 1.
The total trading volume on US exchanges was 11.91 billion shares. The average for the last 20 business days was 11.52 billion shares.
This is a provisional value based on LSEG data.Changes from the previous day may not match *US stock market
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