Ammon News - Stocks fell on Wednesday as good economic news doused hopes for rate cuts in March.

The Dow Jones Industrial Average fell 94 points, or 0.3%, its third straight day in the red. The S&P 500 declined 0.6%, while the tech-heavy Nasdaq fell 0.6%–the indexes’ second day of declines.

Investors felt less optimistic on Wednesday after retail sales data showed American spending levels increased in December, especially on clothing and general merchandise.

The strong read on the economy wasn’t met with hurrah, as it challenges market expectations of a more dovish Fed.

The Atlanta Fed's running estimate of real gross domestic growth also added to the malaise. It showed an expectation of 2.4% annual growth in the fourth quarter of 2023, up from 2.2% on Jan. 10.

Facts are getting in the way of good story, wrote Christopher Harvey, equity analyst at Wells Fargo.

Barron's