Key things
- US stock indexes fell on February 24, 2023 after one of the Fed’s preferred gauges showed inflation at a higher than expected level.
- A drop in pace-sensitive tech stocks sent the Nasdaq down nearly 1.7%, while the S&P 500 and Dow also closed more than 1% lower on Friday.
- The session capped a week of losses that saw the Dow and Nasdaq down 3%, while the S&P 500 ended the week 2.7% lower.
U.S. stocks ended the day and week lower as the inflation report, the Fed’s priority in setting monetary policy, showed larger than expected increase last month. This has raised concerns that policymakers will need to be more aggressive in raising interest rates to lower prices. The Dow, S&P 500 and Nasdaq lost 1%. For the week, the Dow and Nasdaq were down 3% and the S&P 500 was down 2.7%.
Friday’s sell-off was broad, led by the technology sector, which is particularly sensitive to higher borrowing costs. Shares of widely held technology stocks including Apple (AAPL), Amazon (AMZN), Alphabet (GOOGLE), Microsoft (MSFT) and Tesla (TSLA) decreased. Boeing (B.A) was the worst-performing stock in the Dow after the planemaker temporarily halted deliveries of its 787 Dreamliner while it investigated a problem with the jet’s fuselage.
Autodesk (ADSK) shares fell after the design software maker posted weaker-than-expected earnings knowledge. Shares of another software company, Adobe (ADBE), hit on news that the Justice Department plans to file a lawsuit to block the $20 billion purchase of web platform Figma. Carvana (CVNA) shares fell after the online car retailer posted a much larger-than-expected loss. Shares of cruise lines fell.
Market cap of $1 trillion
JPMorgan Chase (JPM) stock gained after Morgan Stanley said the bank could be worth $1 trillion Market capitalization to 2030. Shares of Edison International (EIX) were higher as value in use exceeded profit and sales estimates. Intuition (INTU) shares rose after the maker of TurboTax also beat forecasts on earnings and revenue. Celanese stock (CE) moved up as UBS increased its price target in stock.
Inflation news supported the yield on the 10-year government bond. Oil futures rose for the second day in a row. Gold prices fell. The US dollar strengthened against the euro, pound and yen. Main, important cryptocurrencies traded down.
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