STOCK MARKET TODAY: U.S. stocks fall as hot economic data diminish Fed rate cut prospects

• U.S. stocks were mostly lower on Monday following the release of strong economic data.

• The ISM manufacturing index rose to 50.3 in March, the first monthly expansion since 2022.

• The data poured cold water on hopes for a rate cut in June.

On Monday, solid economic data poured cold water on the Fed's hopes for a June rate cut, as stocks fell and bond yields soared.

Manufacturing activity in the ISM index jumped to 50.3 in March, far exceeding expectations. The figure represented the first monthly expansion in the manufacturing sector since 2022, and the ISM also reported a sharp rise in component prices, raising concerns about stubborn inflation.

If inflation re-accelerates, the Fed may err on the side of caution and postpone its plan to cut rates. Bloomberg's data show that immediately after the release of the ISM report, the Fed's likelihood of a rate cut in June fell below 50%.

The likelihood of a rate cut in June began to move higher on Monday as investors reacted to Friday's release of PCE inflation figures that met expectations.

Here's what the U.S. stock indexes were doing at the 4 p.m. close on Monday:

• S&P 500 Index::5,243.77 points, a decrease of 0.2 per cent.

• Dow Jones Industrial Average39,566.85 points, down 0.6% (241 points)

• Nasdaq Resonanceindices16,396.83, up 0.1 percent

What else happened today?

• Trump Media's share price fell 26% on Monday after the company released its latest financial data showing widening losses.

• The price of gold hit a record high on Monday, exceeding US$2,260 per ounce. The surge in the price of gold was due to investors' expectations that the Federal Reserve would cut interest rates.

• Retail investors are flocking to riskier, more leveraged stock market-tracking ETFs at record highs.

• BI's Emily Steward writes that Truth MediaandTechnology Group's value seems unsustainable given its meager revenues and heavy losses.

• As retail investors begin to get excited about the stock market, "zombie stocks" are making a comeback.

In commodities, bonds and cryptocurrencies:

• West Texas Intermediatecrude oil rose 0.94% to $83.95 a barrel. International benchmark Brent crude oil jumped 0.70% to $87.61 a barrel.

• Gold jumped 1.05% to $2,261.90 an ounce.

• The 10-year Treasury yield rose 12 basis points to 4.33%.

• Bitcoin fell 2.70% to $69,390.

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