The major stock market indexes remained in negative territory in the last hour of trading, and closed at or near the lows of the day. The Federal Reserve released minutes from its most recent meeting at 2 p.m. ET, causing a sell-off into the close.
Fed minutes said that Fed economists showed concern over the banking crisis, fearing it would slow economic growth. Staffers expect "a mild recession starting later this year with a recovery over the subsequent two years."
The 10-year U.S. Treasury yield shed 1 basis point to 3.42%. The CME FedWatch tool shows over 70% odds for a quarter-point rate hike at the May 2-3 meeting.
The Dow Jones Industrial Average edged 0.1% lower. The Nasdaq was the hardest hit, losing 0.9% while the S&P 500 dipped 0.4%. The iShares Russell 2000 ETF dropped 0.7%.
NYSE volume fell slightly and Nasdaq volume increased mildly compared with the same time on Tuesday, in preliminary numbers.
The Nasdaq 100-tracking Invesco QQQ Trust ETF retreated 0.9%. The Innovator IBD 50 ETF fell 0.7%, wiping out earlier gains.
Crude oil gained 2.1% to $83.24 per barrel. Gold futures edged up 0.5% to $2,028 per ounce. The SPDR Gold Trust ETF climbed 0.5% along with the yellow metal.
Bitcoin dipped 1.2% to $29,970, falling below the psychological $30,000 level. Cryptocurrency exchange Coinbase shed 3.4% along with the digital currency.
Stock Market Today Digests Inflation Numbers
The March consumer price index rose 0.1% for the month, lower than the 0.3% expected increase. Year over year, the CPI increased 5% vs. the 5.2% consensus estimate, and a full percentage point lower than February's 6% gain. The numbers show inflation continues to wane, which may help the Fed ease rate hikes.
Monthly and annual numbers excluding food and energy came in on target, with a 0.4% monthly rise and a yearly increase of 5.6%. But the yearly core prices pulled slightly ahead of February's 5.5% reading.
Recession Fears Hit Market; Warren Buffett's Concerns Slam These Stocks
Deal, Upgrade News Cause Big Moves
Triton International soared 32.3% on news it will be acquired by Brookfield Infrastructure for $4.7 billion in cash and stock. The deal is expected to close in the fourth quarter. Triton leases shipping containers. Shares of Brookfield fell 6.1% on the news.
National Instruments popped 9.7% on news that Emerson agreed to acquire the engineering systems designer for $60 per share in cash, equaling $8.2 billion equity value. Emerson backed off 1% on the announcement.
MongoDB rose 6.9% after Morgan Stanley upgraded the data platform developer to overweight from equal weight, and raised its price target to 270 from 230. The stock is forming a flat base with a 248.25 buy point.
Shopify shares got a 1.2% lift after JPMorgan Chase upgraded the stock to market outperform from market perform, with a 65 price target. Shopify is forming a cup base with a 54.76 buy point.
Global Payments gave back earlier gains and closed down 0.6% even after Goldman Sachs upgraded the payment technology stock to a buy from neutral with a price target of 127.
American Airlines plunged 9.2% in heavy volume after announcing Q1 EPS guidance lower than the FactSet consensus, taking other airline stocks down. Shares plunged below the 200-day line. IBD's airline group of 20 stocks fell over 3% on the news.
Stock Market Breakouts Fade
Biotech stock Vertex Pharmaceuticals rose 0.5% to rise above the 325.29 buy point of a cup base. It is in the 5% buy zone, which tops out at 341.55.
Lennar hit the 106.23 buy point of a cup-with-handle base, but was below the entry in afternoon trading. Volume was light, further dimming the breakout. Lennar dipped 0.1% on the day.
Floor & Decor tapped its 99.47 buy point from a cup-with-handle base before pulling back 2.3%.
Software developer Roper Technologies topped a 444.67 cup-with-handle entry, but volume also was light. Shares gained 0.9%, ending below the buy point.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
