US Stocks Slip Amid Inflation and Middle‑East Tensions
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- U.S. stock indices fell, with the Dow down 0.11% (48.96 points), S&P 500 down 0.09% (5.15 points), and Nasdaq down 0.21% (45.85 points).
- Energy sector added 1.3% and utilities rose 1.6%.
- Technology stocks fell, with Microsoft down 1.7% and Apple down 0.7%.
- Amazon rose 1.7% after its CEO highlighted AI services generating over $15 billion in annualized revenue.
- Oil prices rebounded amid limited traffic in the Strait of Hormuz, staying under $100 a barrel.
- U.S. inflation rose as expected in February and is projected to increase in March, prompting the Fed to likely keep rates unchanged.
- Rate‑cut expectations fell to about 30% for a 25‑basis‑point cut by end‑2026, down from 56% a day earlier.
Why it matters: Tech and broad‑market investors see losses, while energy and utility firms benefit from price rebounds; higher oil prices and persistent inflation keep the Fed from cutting rates, limiting potential borrowing‑cost relief for consumers and businesses. The shift also dampens expectations for near‑term rate cuts, reducing the likelihood of cheaper financing for mortgage and corporate borrowers.
