Stocks dip after inflation data, Fed economists' warning
The S&P 500 fell 16.99, or 0.4%, to 4,091.95 after drifting between small gains and losses through the day. The Dow Jones Industrial Average slipped 38.29, or 0.1%, to 33,646.50, and the Nasdaq composite lost 102.54, or 0.9%, to 11,929.34.
The main focus for more than a year on
That's still well above the
Altogether, the data sent stocks bouncing, though the swings weren't nearly as severe as they've been over the past year. Roughly 65% of the stocks within the S&P 500 fell.
Traders are still largely betting the Fed will raise shortterm interest rates by another quarter of a percentage point at its next meeting, according to data from CME Group. They shaded some bets toward the possibility that the Fed will merely hold rates steady in May, something it has not done for more than a year.
"
High rates can undercut inflation, but only by bluntly slowing the entire economy.
That raises the risk of a recession later on, while hurting prices for stocks, bonds and other investments in the meantime.
That has many investors and economists expecting at least a shallow, short recession to hit the economy later
this year.
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