Stocks give up gains and end slightly lower after inflation report

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Stock indexes edged lower on Wall Street on Tuesday, shedding early gains as investors weigh new data on inflation

Stocks ended slightly lower on Wall Street on Tuesday after investors weighed new data showing some signs that inflation slowed slightly in March, though overall it remained at its highest level in 40 years.

Another faint silver lining was that inflation wasn’t as bad as economists expected, when ignoring the costs of food and fuel. Known as “core inflation,” this is the reading that the Federal Reserve pays more attention to when setting policy because it’s less volatile. And core inflation on a month-over-month basis moderated to its slowest level since September.“Hopefully this is as bad as it gets,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments.

The S&P 500 fell 15.08 points to 4,397.45. The Dow shed 87.72 points to 34,220.36, and the Nasdaq lost 40.38 points to close at 13,371.57. Stocks in recent days have been trading in the opposite direction of Treasury yields, which have climbed to their highest levels since well before the pandemic. Yields jumped as investors brace for the Federal Reserve to raise short-term rates at a faster pace than typical and to aggressively pare its trove of bonds, whose buildup helped keep longer-term rates low.

 

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