US Market: Dow, S&P 500, Nasdaq Close Lower

US Market: Dow, S&P 500, Nasdaq Close Lower

The three major indices of the US stock market closed lower on Wednesday, as investors continued to digest the latest inflation data and the Federal Reserve's decision to raise interest rates. The S&P 500 fell 0.16%, the Nasdaq Composite dropped 0.06%, and the Dow Jones Industrial Average declined 0.14%. The market's losses were broad-based, with all 11 sectors of the S&P 500 finishing in the red. The energy sector was the biggest loser, falling 1.3%, as oil prices continued to decline. The market's losses came as investors continued to digest the latest inflation data. The consumer price index (CPI) rose 0.1% in August, which was less than the 0.3% increase that economists had expected. However, the core CPI, which excludes food and energy prices, rose 0.6%, which was more than the 0.4% increase that economists had expected. The hotter-than-expected core CPI data raised concerns that the Federal Reserve may need to raise interest rates more aggressively than previously expected. The Fed raised interest rates by 50 basis points last week, and it is now widely expected to raise rates by another 50 basis points at its next meeting in November. The market's losses were also exacerbated by concerns about the global economy. The International Monetary Fund (IMF) cut its global growth forecast for 2023, citing the war in Ukraine, rising inflation, and the tightening of monetary policy. Despite the market's losses, some analysts remain optimistic about the long-term outlook for stocks. They argue that the market is currently oversold and that the recent pullback provides a buying opportunity for investors with a long-term horizon.