Stocks declined on Tuesday as concerns about persistent inflation weighed on investor sentiment. The Dow, S&P 500, and Nasdaq Composite all posted losses, breaking a five-month streak of gains. The Dow had its worst month since September 2022. The Employment Cost Index rose 1.2% in the last quarter, surpassing the previous quarter’s 0.9% increase. Investors worry that rising compensation growth may contribute to inflationary pressures. With economic growth showing signs of slowing down and inflation remaining high, the Federal Reserve faces a challenging decision regarding interest rate cuts. The Fed’s monetary policy meeting began on Tuesday, and investors are eager for any hints about the timing of rate cuts.
