The U.S. stock market declined on Wednesday after investors processed inflation data while major technology companies experienced losses that pulled down market indexes.
The S&P 500 declined 0.3%, while the Dow edged down 1 point and the Nasdaq fell 0.5%. Apple stock prices declined by 1.9% because its recent software updates did not generate enough investor enthusiasm.
The bond yields decreased after consumer prices increased 2.4% from last year in May according to the report which was higher than April but lower than market predictions. The slight inflation rise reduced worries about President Trump’s new tariffs accelerating price growth.
The Fed’s ability to control inflation became a concern because of Trump’s aggressive trade policies at the same time. But so far, price pressures remain contained. The complete effects of tariffs will become apparent only after several months according to economic experts.
The current inflation data provides the Federal Reserve with flexibility to implement policy easings during the second half of the year according to traders. The decision to lower interest rates remains uncertain because policymakers need to assess both the overall impact of tariffs and international political instability.
