Stock Market Today: Dow ends lower as solid retail sales dent March Fed cut bets
Investing.com — The Dow closed lower Wednesday for the third-straight session as Treasury yields continued to advance to put the squeeze on tech after stronger-than-expected economic data muddied investor expectations for a Federal Reserve March rate cut.
By 16:00 ET (21:00 GMT), the Dow Jones Industrial Average was down 94 points, or 0.3%, the S&P 500 fell 0.5%, and NASDAQ Composite fell 0.6%.
U.S. Treasury yields continued to climb higher, with the yield on the 10-year Treasury note rose further above 4% to hit highest level this year after U.S. retail sales rose 0.6% in the month of December, topping expectations for 0.4%. Signs of a stronger consumer, which makes up about two-thirds of economic growth, suggesting the economy remains in good share dented expectations for a rate cut as soon as March.
«A stronger-than-expected showing in retail spending reinforces the notion of an ongoing sound and resilient consumer, and more broadly, solid growth,» Stifel said in a note.
The odds of a March rate cut fell to about 50% from 61% a year earlier, according to Investing.com's Fed Rate Monitor Tool.
The data also added clout to remarks from Federal Reserve Governor Christopher Waller who indicated on Tuesday that while interest rate cuts were likely to happen this year, the central bank wasn't considering any in the near-term, citing continued resilience in the U.S. economy.
The banking sector remained in the spotlight Wednesday, with Charles Schwab (NYSE:SCHW) stock fell 1% after the financial services group reported a 22% dip in net profit in 2023, saying it dealt with «challenges» posed by a tighter interest rate environment.
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