US stocks closed lower on Friday after another hotter-than-expected inflation reading undermined the case for interest rate cuts.
The S&P 500 (^GSPC) dipped 0.5% in the wake of another record closing high. The Dow Jones Industrial Average (^DJI) fell 0.4%. The tech-heavy Nasdaq Composite (^IXIC) dropped 0.8%.
The Producer Price Index, a key gauge measuring wholesale inflation, jumped 0.3% in January from the prior month, compared with the 0.1% rise expected by economists.
The market was on a rollercoaster ride this week as a series of mixed data prompted investors to keep reassessing their view of the US economy, Federal Reserve policy thinking, and the timing of interest rate cuts.
The Dow sank 500 points just a day after notching an all-time high as a surprisingly hot consumer inflation report spurred a rout earlier this week.
Stocks have made up their deep losses after a steep decline in retail sales, putting weekly wins within reach for the Dow and the S&P 500.
In earnings-related moves, Coinbase (COIN) shares surged over 14% after the crypto exchange posted its first quarterly profit in two years. Applied Materials’ (AMAT) stock price jumped over 9% as investors welcomed signs of a chip sector rebound in the machinery maker’s upbeat forecast.
