U.S. stocks turned lower on Wednesday despite economic data on retail sales and producer prices that eased fears about interest rate hikes.
At 11:10 ET (16:10 GMT), the Dow Jones Industrial Average was down 257 points or 0.7%, while the S&P 500 was down 0.4% and the NASDAQ Composite was down 0.2%. All three indexes rose to start the day.
Retail sales for December fell more than expected, giving investors hope that interest rate increases by the Federal Reserve wouldn’t have to be as aggressive as they were last year.
The market has already been betting that the Fed’s next rate move would be smaller than the moves it made last year, with the expectation being a quarter of a percentage point rate increase in February.
Adding to the hope that inflation is waning, producer prices also rose less than expected for the year.
Later today, the Fed will release its periodic beige book, which is a collection of observations by officials in each of its regional bank districts, with commentary on business activity and economic conditions throughout the country.
Microsoft Corporation (NASDAQ:MSFT) shares fell 1.1% after it said it was cutting 10,000 jobs and taking a $1.2 billion charge as it braces for slower revenue growth.
Moderna, Inc. (NASDAQ:MRNA) shares rose 4.2% after the COVID-19 vaccine maker said it had success with older adults in a trial of its experimental vaccine for RSV, a contagious respiratory virus.
Charles Schwab Corp. (NYSE:SCHW) stock fell 3.6% after it fell short of expectations for fourth-quarter earnings.
Oil rose. Crude Oil WTI Futures were up 2.1% to $82.15 a barrel, while Brent Oil Futures were up 1.7% to $87.40 a barrel. Gold Futures
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or rose 0.2% to $1,913.