The Dow Jones Industrial Average declined for a second consecutive day, extending the lackluster performance on Wall Street at the beginning of the quarter. This drop was influenced by rising bond yields and diminishing expectations among traders regarding a possible interest rate cut by the Federal Reserve in June.
The Dow fell by 426 points, equivalent to a 1.1% decrease. The S&P 500 also experienced a decline of 0.9%, while the Nasdaq Composite saw a drop of 1.2%.
The second quarter has proven challenging for stocks, as inflation data from the previous week and strong economic indicators on Monday pushed yields higher and reduced the likelihood of a rate cut by the Fed in June. Additionally, oil prices reached a five-month high on Tuesday, adding to inflationary pressures.
The release of February’s core personal consumption expenditures price index last Friday revealed a 2.8% annual increase, which is consistent with the rates seen in December and January at 2.9%. Despite these numbers being below the Fed’s 2% inflation target, there remains room for improvement.
