Wall Street snaps winning streak as Fed keeps rates unchanged, inflation fears loom

S&P 500 fell 1.4% as wholesale inflation came in hotter-than-expected and the Federal Reserve held interest rates steady. The hotter-than-expected inflation print prompted risk-off positioning, weighing on major averages after two days of gains and likely driving a near-term repricing of rate expectations and elevated volatility.

Analysis

S&P 500 fell 1.4% as wholesale inflation came in hotter-than-expected and the Federal Reserve held interest rates steady. The hotter-than-expected inflation print prompted risk-off positioning, weighing on major averages after two days of gains and likely driving a near-term repricing of rate expectations and elevated volatility.