Stocks, dollar make little progress after US inflation data

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The S&P 500 loses 0.03% after earlier rising as much as 0.54% and falling as much as 1.02% on Tuesday, February 14.

While Wall Street’s equity indexes swayed between positive and negative territory during the session, US Treasury yields were higher on investor expectations for tighter monetary policy.

“The concern today is that inflation is not coming down fast enough and the Fed has to stay hawkish. When the bond market gets jittery it translates into the stock market,” said John Augustine, chief investment officer at Huntington National Bank in Columbus, Ohio. But New York Fed President John Williams said while inflation is moderating, the central bank has a ways to go to slow price increases and it may take years to hit its 2% inflation target.

“My guess is the year-over-year decline in topline and core [consumer price index] suggests another 25-basis-point hike in March and another one in May.” The pan-European STOXX 600 index closed up 0.08% and MSCI’s gauge of stocks across the globe ended up 0.10%.

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