Stock market futures declined Wednesday morning following a government report showing wholesale prices climbed faster than anticipated in February. The unexpected inflation surge has reduced hopes that the Federal Reserve might cut interest rates later this year.
Stock market futures headed lower Wednesday morning after government data revealed wholesale prices climbed at a steeper pace than anticipated during February, reducing optimism about potential Federal Reserve interest rate cuts in 2024.
The Labor Department’s latest report indicated the Producer Price Index jumped 3.4% compared to the same month last year, surpassing the 2.9% increase that economists surveyed by Reuters had predicted.
Monthly figures showed an even sharper contrast, with prices climbing 0.7% versus the forecasted 0.3% gain.
When removing fluctuating food and energy costs, the core Producer Price Index reached 3.9% annually, above economist predictions of 3.7%. The monthly core reading also exceeded expectations at 0.5%, compared to the anticipated 0.3% increase.
By 8:36 a.m. Eastern Time, Dow futures had dropped 115 points or 0.24%, while S&P 500 futures fell 15 points or 0.22%. Nasdaq 100 futures declined 47.25 points or 0.19%.
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