https://www.cnbc.com/2023/02/15/stoc...e-updates.html
The new data comes after January's consumer price index and retail sales report were both higher than expected, suggesting that the
Fed may have further to go in its efforts to tame inflation.
"Both inflation readings this week point to
the stickiness of inflation and that the fight isn't over, especially when considering today's PPI reading was the highest month-over-month increase since early summer," said Mike Loewengart, head of model portfolio construction at Morgan Stanley.
He added that declining jobless claims suggest the labor market remains tight.
"It shouldn't be a surprise to see the market take a breather as hopes of a dovish Fed in the coming months fade," Loewengart said. "Bottom line is investors should recognize inflation may not return to normal levels as quick as many hope, and with that may come more volatility."
Comments from St. Louis Federal Reserve President James Bullard that he'd advocated for a 50 basis-point interest rate hike at the last meeting and could see a hike of that magnitude in March also weighed on equities. Cleveland Fed President Loretta Mester also said she supported a larger hike.