Wall Street Ends Wild Week on Sour Note After PPI: Markets Wrap

  • US producer prices increase by more than forecast in January
  • Fed’s Daly says three rate cuts in 2024 is reasonable baseline
PPI Increases More Than Forecast as Housing Starts DropSource: Bloomberg
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The world’s biggest bond market extended this year’s selloff and stocks dropped from a record on speculation that the Federal Reserve will be in no rush to cut interest rates.

Another report signaling inflation is showing signs of being “stickier” than expected weighed on Wall Street’s sentiment, with the producer price index rising on a sizable jump in costs of services. Traders found little encouragement to bid up the market at a time when the Fed bumps into what’s being referred to as a tough “last mile” toward its goals.