Markets Fall on High Core Inflation and Recession Fears

Early gains faded and U.S. equities ended lower as the Labor Department's latest report on consumer prices showed core inflation remained elevated, and the Federal Reserve meeting minutes revealed that members anticipated a mild recession this year because of the fallout from last month's banking turmoil. The Dow, S&P 500, and Nasdaq all dropped.

Airline stocks lost altitude after American Airlines (AAL) posted current quarter earnings guidance that missed analysts' estimates. Shares of other travel-related companies fell as well. Several big tech stocks stumbled, with shares of Tesla (TSLA) sinking 3%, Amazon (AMZN) losing 2%, and Cisco Systems (CSCO), IBM (IBM), and Intel (INTC) down 1%.

Shares of First Republic Bank (FRC) declined following a report that some of the banks that gave emergency backing to the struggling bank are now increasing their reserves to cover potential losses. Etsy (ETSY) shares dipped on word that the online marketplace is looking for a new creative advertising agency. The post-earnings report rally for CarMax (KMX) stock hit the brakes, with shares sinking 5%.

Dow Chemical Shares Advance

Shares of chemical maker Dow (DOW) gained 1.25%. It was the only stock in the Dow aside from Merck (MRK) with shares that rose more than 1%. Triton International (TRTN) shares hit an all-time high as the largest owner of shipping containers agreed to be acquired by Brookfield Infrastructure (BIPC) and taken private. Shares of National Instruments (NATI) were up 9% after Emerson Electric (EMR) announced that it had purchased the testing equipment maker. Shares of Emerson rival Fortive Corporation (FTV), which had also made a bid for National Instruments, advanced on the news.

Oil futures gained 2%, and gold futures were 0.5% higher. The yield on the 10-year Treasury note lost ground. The U.S. dollar slipped versus the euro, pound, and yen. Prices for most major cryptocurrencies fell.