Stock market today: Dow, S&P 500, Nasdaq slip after hotter-than-expected inflation print

Published On Oct 10, 2024, 9:32 AM

The stock market experienced a downturn today, with the Dow, S&P 500, and Nasdaq indices sliding following the release of inflation data that exceeded expectations. This hotter-than-anticipated inflation print is raising concerns about potential interest rate hikes by the Federal Reserve, which may lead to a tightening of monetary policy. Investors are reacting to these signals as they consider the implications for economic growth and market conditions.

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Stock Forecasts

SPYView SPY chart on TradingView

Negative

Given the persistently high inflation rates, it may prompt the Federal Reserve to continue raising interest rates, which historically negatively impacts market performance as borrowing costs rise. Investors might be cautious moving forward, leading to possible sell-offs in equities.

XLPView XLP chart on TradingView

Positive

High inflation could benefit sectors that traditionally outperform during inflationary periods, such as consumer staples and energy. This could lead to potential investment opportunities in ETFs that focus on these sectors.

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