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US stocks fall as investors weigh fresh inflation data and more tech earnings

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Reuters / Brendan McDermid

  • US stocks dropped on Friday amid fresh inflation data and corporate earnings.
  • The PCE price index rose 4.2% in March from a year ago, compared to the prior month’s 5.1% gain.
  • Amazon raised concerns about its cloud business moving forward, and shares fell Friday.

US stocks dropped Friday as investors responded to fresh economic data and corporate earnings from Amazon and Intel

The personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, rose 0.1% in March from the prior month. Yearly growth cooled to 4.2% from 5.1% in February. 

Excluding food and energy, the index climbed 0.3% for the month, in line with forecasts, and 4.6% for the year.

“The inflation dynamics along with improved financial stability after the recent banking crisis will bring the Fed to another rate hike next week,” Jeffrey Roach, chief economist for LPL Financial, wrote in a Friday note. “However, the slowdown in business activity and signs of a softer job market will likely force the Fed to consider ending its current rate hiking campaign later this year.”

Amazon stock dropped after warning on AWS growth, while Intel rose after reporting strong quarterly figures. FactSet data shows that of 261 S&P 500 companies that have published earnings, roughly 80% have reported positive surprises. 

Here’s where US indexes stood as the market opened 9:30 a.m. on Friday: 

Here’s what else is going on: 

In commodities, bonds, and crypto: 

Read the original article on Business Insider