US Stocks Inch Lower Ahead of Fed

The S&P 500 and the Nasdaq 100 were 0.4% lower, while the Dow lost 0.8%. Both headline and core producer inflation rates were sharply above expectations in February, reflecting cost traction before the energy shock in the Persian Gulf triggered a surge in energy prices this month. Pro-inflationary concerns are expected to be reflected in economic projections by FOMC members to be released today together with an expected rate hold by the Federal Reserve. Most sectors were broadly lower as Treasury yields rose and pressed the credit outlook for corporations. Amazon, Microsoft, Meta, and Oracle were over 0.5% lower, while P&G dropped 1.5% to set the pace for the consumer defensive sector. In the meantime, Micron was nearly 1% higher ahead of its earnings release after the bell.