The S&P 500 Index ($SPX) (SPY) today is down by -1.52%, the Dow Jones Industrials Index ($DOWI) (DIA) is down by -1.62%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -1.49%.
Stocks are under pressure today, with the Dow Jones Industrials falling to a 4-week low. Today’s as-expected US consumer price report is weighing on stocks after US core consumer prices in August rose +3.2% y/y, unchanged from July and well above the Fed’s +2.0% target. The stickiness of core prices boosted T-note yields and knocked the chances of a 50 bp rate cut at next week’s FOMC meeting down to 19% from 50% after the release of last Friday’s US payroll report. The weakness in bank stocks and health insurers today also weighed on the overall market.
