Stocks slide after hot PPI inflation, with Fed ahead
US stocks turned lower on Wednesday after the latest reading on prices pointed to accelerating inflation as investors waited for the Federal Reserve’s latest policy decision.
The Dow Jones Industrial Average (^DJI) lost 0.5% following a second winning day in a row for Wall Street stocks. The S&P 500 (^GSPC) and tech-focused Nasdaq Composite (^IXIC) fell about 0.3% and 0.4%, respectively.
Wholesale inflation accelerated in February, new government data showed, before the effects of the Middle East conflict that has gripped markets this month. US producer prices rose 0.7% month-over-month, more than double what economists expected, while a 3.4% year-over-year increase was also far above estimates.
The PPI reading weighed on markets already bracing for the Fed’s policy decision later Wednesday, and for what Chair Jerome Powell might say about the potential inflationary impact of high oil prices in his comments. They’ll also digest the central bank’s Summary of Economic Projections, which will shed light on policymakers’ expectations for inflation, the labor market, and the US economy as a whole. Markets broadly expect policymakers to leave rates unchanged in a 3.5% to 3.75% range.
Wall Street had been cautiously adjusting to the Iran conflict this week, shifting toward pricing in the spillover rather than reacting to the shock. The killing of another top Iranian official came after Tehran vowed revenge, while a fresh round of rhetoric from President Trump failed to dampen war fears. Amid the hostilities, the market focus stayed firmly on when the Strait of Hormuz might reopen to ease pressure on oil prices — a prospect seen as unlikely without a ceasefire.
Against that backdrop, Brent crude futures (BZ=F) rose to $108 a barrel, continuing their recent surge after Iran said some of its energy facilities had come under attack. West Texas Intermediate crude futures (CL=F) also turned higher to trade near $98.
On the corporate front, investors are watching Micron Technology (MU), which is set to report quarterly results after Wednesday’s close. General Mills (GIS) and Macy’s (M) also report on Wednesday.
Daily Market Coverage Mar. 18, 2026 9AM-11AM (ET) | Yahoo Finance
==
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
Connect with us:
— Facebook: https://www.facebook.com/yahoofinance
— X/Twitter: https://x.com/YahooFinance
— Instagram: https://www.instagram.com/yahoofinance/
— TikTok: https://www.tiktok.com/@yahoofinance
— LinkedIn: https://www.linkedin.com/company/yahoo-finance
See the Latest News & Data:
https://finance.yahoo.com/
Get the Yahoo Finance App:
— iOS (https://apple.co/3Rten0R)
— Android (https://bit.ly/3t8UnXO)
source
