Dow falls slightly Friday, heading for worst week since September on inflation, interest rates fears

Peak inflation is probably behind us, says chief economist at Kroll Global

Stocks fell on Friday, heading for weekly losses as concerns about higher rates rose on Wall Street.

The Dow Jones Industrial Average fell 111 points, or 0.3%, putting it on pace for its worst week since September. The S&P 500 and Nasdaq Composite fell 0.5% and 0.7% respectively.

The Dow is down more than 2% in the week to date, while the S&P 500 is down 2.7%. The Nasdaq has lost 3.4 percent.

Friday’s move came as November’s producer price index showed higher-than-expected wholesale prices, which rose 0.3% last month and 7.4% from a year earlier. That topped the 0.2% rise expected by economists polled by Dow Jones. Core PPI, which excludes food and energy, rose 0.4%, beating an estimate of 0.2%.

Investors are laser-focused on next week’s busy economic calendar, with another key inflation figure – the consumer price index – due out on Tuesday, expected to show whether prices are falling.

The Federal Reserve is also expected to deliver a 50 basis point increase at the conclusion of its policy meeting in December. Although the increase would be smaller than the previous four hikes, concerns have grown about whether the central bank can build a soft landing and prevent a recession.

“I think we’ll have to wait to get the CPI number next week, but I would say this number, the PPI this morning, is certainly a disappointment,” Brenda Vingiello, chief investment officer at Sand Hill Global Advisors, told CNBC’s “Squawk Box.” ,” adding that recent data is “stacking up in favor” of continued hikes by the Fed.

Friday’s move came after the S&P 500 snapped its longest losing streak since October. The Nasdaq was the strongest performer on Thursday, rising 1.13%.

In other news, shares of Lululemon fell more than 6% after the company gave a weaker-than-expected outlook for the fourth quarter. Bath & Body Works’ shares rose as Dan Loeb revealed a boost in its efforts.

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