Stocks Struggle as Technology Losses Weigh Heavy

The S&P 500 and Nasdaq fell on Wednesday, hitting bumps as technology stocks dipped, including notable losses from Nvidia and Microsoft. Investors were focused on potential Federal Reserve actions following the release of in-line inflation data.

The Personal Consumption Expenditure index, a key inflation gauge, rose 2.3% annually, exceeding the Fed’s 2% target, signaling persistent inflationary pressures. Despite this, traders foresee a 66% chance of a December interest rate cut.

The Dow’s modest rise contrasted with technology’s decline, buoyed by gains in healthcare and finance stocks, amid mixed corporate earnings and broader economic policies from the incoming administration posing additional uncertainty.

(With inputs from agencies.)