On Friday, the stock market took a downturn, leading to a potential weekly decline for Wall Street as traders pondered over the implications of recent high inflation figures on the Federal Reserve’s upcoming policy decisions.
The S&P 500 dropped by 0.7%, while the Dow Jones Industrial Average saw a reduction of 0.6%, losing over 200 points. The Nasdaq Composite, known for its tech focus, experienced a 1% decrease.
This downturn follows Thursday’s market-wide losses triggered by an inflation report that exceeded expectations, causing investors to reconsider their expectations for a rate cut in June. The persistence of high inflation raises doubts about its ease of management and challenges the rationale behind reducing interest rates.
In the absence of significant data releases on Friday, attention is shifting towards the February PCE report, the Fed’s preferred inflation gauge. However, this information will only be available towards the end of March, subsequent to the Fed’s policy meeting next week.
In the cryptocurrency world, bitcoin experienced a decline from its recent peak of over $73,000, with its value hovering just below $68,000 in the afternoon.
On the corporate front, Adobe’s shares plummeted more than 14% following a lower-than-expected quarterly sales projection, intensifying concerns about its competition with AI startups. Furthermore, Zillow’s shares dropped by 15% on Friday, along with other real estate companies, after the National Association of Realtors agreed to a legal settlement that could lead to reduced commissions for home buyers and sellers.
Featured Image -Freepik
Author Kristen Moran 
