US stocks fall as inflation drops in March but traders mull fresh recession concerns

Investor cheered lower inflation data but concerns grew as the Fed said banking sector turmoil could send the economy into a recession by year-end.

• US stocks erased earlier gains to close lowers despite cooler-than-expected March inflation data. 
• The consumer price index increased 0.1% last month compared to estimates of 0.2%. 
• The Fed expects the economy to slip into a recession later this year, meeting minutes show. 

US stocks declined on Wednesday as investors assess concerns over a coming recession. 

Meeting minutes released by the Federal Reserve said policymakers anticipate banking sector turmoil to send the economy into a downturn later this year. 

Equities erased earlier gains in the session, which were spurred by a cooler-than-expected March inflation report. 

"Reflecting the effects of less projected tightness in product and labor markets, core inflation was forecast to slow sharply next year," FOMC minutes said.

The consumer price index increased 0.1% month-over-month in March compared to analysts' estimates of 0.2%, and was up 5% from a year ago Excluding food and energy prices, the closely watched core CPI increased 5.6% on an yearly basis compared to 5.5% in February. 

Inflation levels remains elevated as the US central bank tries to wrangle it down to its 2% target. Fed fund futures are showing odds favor a 25 basis-point rate hike in May and for the Fed to begin cutting interest rates in July. 

Here's where US indexes stood shortly after the 4:00 p.m. ET close on Wednesday:

• S&P 500: 4,091.95, down 0.41%
• Dow Jones Industrial Average: 33,646.50, down 0.11% (38.29 points)
• Nasdaq Composite: 11,929.34, down 0.85%

Here's what else is happening this morning:

• IIF chief warns that the largest threat to the banking sector is the central banks' monetary tightening campaigns and geopolitical woes.
• Berkshire Hathaway chairman Warren Buffett says bitcoin is a "gambling token" with zero value. 
• Surging interest rates and banking concerns pose significant risks to lending, according to Bill Gross and Jeffrey Gundlach, who both predict a credit crunch.
• Here are few signals that have to flash in order for stocks to enter a sustainable bull market, according to Fairlead Strategies' Katie Stockton.
• Economist David Rosenberg breaks down why another central bank interest rate hikes will be a mistake.

In commodities, bonds and crypto:

• West Texas Intermediate crude oil rose 2% to $83.23 per barrel. Brent crude, oil's international benchmark, jumped 1.9% to $87.25.
• Gold rose 0.5% to $2,028.70 per ounce.
• The yield on the 10-year Treasury was flat at 3.40%. 
• Bitcoin rose slightly to $30,216.03, while ether fell 1.33% to $1,892.