Stocks ended lower on Friday, with all major averages posting losses for the week as concerns persisted over further rate hikes.
The Dow Jones Industrial Average fell 305.02 points, or 0.9%, to close at 33,476.46. The S&P 500 fell 0.73% to end at 3,934.38, while the Nasdaq Composite fell 0.7% to end at 11,004.62.
On a weekly basis, the Dow Jones fell 2.77% to post its worst week since September. The S&P fell 3.37%, while the Nasdaq fell 3.99%.
Friday’s moves came after November’s the producer price index showed higher-than-expected wholesale prices, which rose 0.3% last month and 7.4% over the previous year. The core PPI, which excludes food and energy, also exceeded expectations.
Optimistic consumer sentiment the data alleviated some fearsbut attention remains focused on next week’s busy economic calendar.
The focus shifted to Tuesday’s consumer price index, which should show whether inflation has receded. The Federal Reserve will likely hike 50 basis points at the end of its December meeting on Wednesday. While the increase would be smaller than the previous four hikes, concerns have been raised over whether the central bank can stage a soft landing and stave off a recession.
Investors had long hoped for a pivot from the Fed’s aggressive tightening stance, but the data doesn’t support that desire, said Stephanie Lang, chief investment officer at Homrich Berg.
“We expect that we really need to see inflation get closer to the fed funds rate for the Fed to pause, and we still have some delta between those numbers,” she said. “There’s still a little work to be done on the inflation front to really see this as reality.”
In other news, shares of lululemon fell nearly 13% after the company gave a weaker than expected outlook for the fourth quarter. DocuSign jumped on strong results.