U.S. stocks are falling after Fed officials stoke rate fears

By Liz Moyer

Investing.com -- U.S. stocks were falling on Friday after comments from Federal Reserve officials renewed fears about interest rates.

At 9:48 ET (14:48 GMT), the Dow Jones Industrial Average was down 124 points or 0.4%, while the S&P 500 was down 0.8% and the NASDAQ Composite was down 1.2%.

Hotter-than-expected producer prices on Thursday prompted fears that the Fed would keep its monetary restrictive for the rest of the year. And St. Louis Fed President James Bullard said he wouldn't rule out supporting a half-percentage point rate increase at the March meeting. Many market watchers have been betting on a quarter of a percentage point increase.

Bullard said Thursday he supported the idea of a half-point hike in February to bring the benchmark rate above 5% as soon as possible. Cleveland Fed President Loretta Mester also said she saw a strong case for a bigger increase.

Richmond Fed President Thomas Barkin and Fed Gov. Michelle Bowman are scheduled to speak today.

Stocks have gyrated this week after the economic data pointing to inflation as well as a tight labor market.

Shares of Moderna (NASDAQ: MRNA) fell 6.1% after its experimental mRNA flu vaccine wasn't as effective as an approved vaccine against influenza B.

DraftKings (NASDAQ: DKNG) shares jumped 17.1% after the gambling company reported a smaller-than-expected loss in the quarter and raised its outlook for 2023, benefiting as more states legalize sports betting.

Deere&Company (NYSE: DE) shares rose 5% after it raised guidance as farmers continue to buy new agriculture equipment.

Oil fell. Crude Oil WTI Futures was down 3.9% to $75.44 a barrel, while Brent Oil Futures was down 3.5% to $82.15 a barrel. Gold Futures was down 1% to $1840.

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