Posted 1/17/2024, 4:45:44 PM
Stocks Drop as Strong Retail Sales Data Damps Hopes for Fed Rate Cut
- U.S. stocks fell on Wednesday after hotter-than-expected retail sales data lowered expectations for a Fed rate cut in March
- Retail sales in December rose 0.6% M/M, exceeding estimates, signaling consumer strength
- Odds of a 25 basis point Fed rate cut in March dropped to 56% compared to 63-65% previously
- Treasury yields jumped after the data, with the 2-year yield showing the biggest reaction, rising 14 basis points
- Charles Schwab shares slipped after the brokerage reported a fall in quarterly profit and revenue