Monday's good-news-is-bad-news manufacturing data sparked concern over the Federal Reserve's rate-cut plans and kept a lid on sentiment.
Several key events over the next few weeks could impact when the central bank may or may not start lowering the federal funds rate including this Friday's jobs report, which economists expect to show a still-strong labor market.
S&P Global kicked off this morning's relatively busy economic calendar with the release of its March Manufacturing Purchasing Managers Index (PMI) which measures manufacturing activity. The index slipped to 51.9 in March from February's 52.2, though it was the third straight month it was above the 50 mark that indicates expansion.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Meanwhile, the Institute for Supply Management said its Manufacturing PMI swung into expansion territory in March, arriving at 50.3% vs February's 47.8%. However, the data also showed that the ISM's Manufacturing Price Index – a measure of inflation – rose to an 18-month high of 55.8% last month.
Recent hotter-than-expected economic reports have pushed back expectations on the Fed's rate-cut plans and today's data continued that trend. According to CME Group's FedWatch Tool, futures traders are currently pricing in a 57% chance the first quarter-point rate cut will come in June, down from 64% one week ago. The odds of it happening in July are at 52%, up from last week's 48%.
What's more, commentary from central bank officials seems they're in no hurry to lower the federal funds rate if they don't need to. Indeed, in a moderated discussion last Friday, Fed Chair Jerome Powell said the central bank will be careful about its decision to cut interest rates "because it can be. The economy is strong: We see very strong growth."
AT&T stock slips after data breach news
In single-stock news, AT&T (T) fell 0.6% on news of a massive cybersecurity attack. In a statement, the telecommunications company said it is investigating the data breach which likely took place in 2019 or earlier and impacted 73 million former and current customers. (Here's what to do if you were affected by the AT&T breach.)
AT&T also said that the incident has not had "a material impact on its operations."
Buffett buys more Liberty SiriusXM shares
Elsewhere, Liberty SiriusXM Group Series C (LSXMK) dropped 1.4% even after regulatory filings revealed Warren Buffett's Berkshire Hathaway (BRK.B, -0.1%) bought 8.9 million shares over the final two weeks of Q1.
Form 4 filings also showed Buffett's holding company acquired 3.8 million shares of Liberty SiriusXM Group Series A (LSXMA, -1.3%), the class with voting rights. The two stocks have been a part of the Berkshire Hathaway equity portfolio since Q2 2016.
The full list of all the stocks Buffett bought and sold in the first quarter will be released next month.
As for the main indexes, the Dow Jones Industrial Average fell 0.6% to 39,566 and the S&P 500 shed 0.2% to 5,243. The Nasdaq Composite eked out a 0.1% gain to 16,396 on strength in several mega-cap stocks such as Alphabet (GOOGL, +3.0%) and Meta Platforms (META, +1.2%).
Related content
- Treasury Bills vs. Treasury Bonds: Know the Difference
- What Is Bitcoin Halving and Why Is It Important?
- Kiplinger's Earnings Calendar for This Week
-
S&P 500 Slips Ahead of Fed Week: Stock Market TodayAll eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
September Fed Meeting: Live Updates and CommentaryThe September Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. will do about interest rates.
-
I'm an Investment Strategist: This Is How the Fed's Next Rate Move Could Impact Your WalletInterest rate cuts might be coming, which could affect everything from your credit card debt to your mortgage. It's smart to prepare now — here's how.
-
I'm a Retirement Planner: These Are Three Common Tax Mistakes You Could Be Making With Your InvestmentsDon't pay more tax on your investments than you need to. You can keep more money in your pocket (or for retirement) by avoiding these three common mistakes.
-
Want to Shave 10 Hours Off Your Workweek? A Startup Expert Shows How AI Can HelpArtificial intelligence is overhauling how companies operate, freeing up entrepreneurs and their workers to skip the menial stuff and get down to business.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market TodayWednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
-
Hot August CPI Report Doesn't Shift the Rate-Cut Needle: What the Experts SayThe August CPI came in higher than forecast on a monthly basis, but Wall Street still expects a rate cut at next week's Fed meeting.
-
Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings, From a Financial PlannerHolding too much of one company's stock can put your financial future at risk. Here are four ways you can strategically unwind such positions without triggering a massive tax bill.
