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Why Is the Stock Market Down Today, 3/13/26?
Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) reversed their gains on Friday following a wave of economic data releases.
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First, the Personal Consumption Expenditures (PCE) index, a measure of inflation, rose by 2.8% annually in January, in line with the consensus estimate and edging down from 2.9% in December. Core PCE, which excludes volatile food and energy prices, was in line with the estimate of 3.1% and increased from 3.0%.
GDP Growth Slashed in Half as Job Openings Rise
Meanwhile, gross domestic product (GDP) slowed dramatically in the fourth quarter, as the Bureau of Economic Analysis (BEA) halved its estimate to 0.7% from 1.4% amid a slowdown in government spending. In addition, the preliminary Index of Consumer Sentiment for March fell by 1.1 points to 55.5, registering its lowest level this year.
Finally, the Job Openings and Labor Turnover Survey (JOLTS) showed 6.946 million job openings in January, above the estimate of 6.75 million and rising from 6.55 million in the prior month. Furthermore, the job openings rate, which indicates how many jobs are available relative to the size of the labor market, grew to 4.2% from 3.9%.
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