Stock market futures headed lower Wednesday morning after government data revealed wholesale prices climbed at a steeper pace than anticipated during February, reducing optimism about potential Federal Reserve interest rate cuts in 2024.
The Labor Department’s latest report indicated the Producer Price Index jumped 3.4% compared to the same month last year, surpassing the 2.9% increase that economists surveyed by Reuters had predicted.
Monthly figures showed an even sharper contrast, with prices climbing 0.7% versus the forecasted 0.3% gain.
When removing fluctuating food and energy costs, the core Producer Price Index reached 3.9% annually, above economist predictions of 3.7%. The monthly core reading also exceeded expectations at 0.5%, compared to the anticipated 0.3% increase.
By 8:36 a.m. Eastern Time, Dow futures had dropped 115 points or 0.24%, while S&P 500 futures fell 15 points or 0.22%. Nasdaq 100 futures declined 47.25 points or 0.19%.
