US stocks dip to start the month as investors grapple with fears of interest rates higher for longer

• US stocks fell on Wednesday as investors continue to fear the prospect of higher for longer interest rates.
• The inflation rate in Germany unexpectedly accelerated in February, raising fears that the same thing could happen in the US.
• The Federal Reserve is expected to hike interest rates at least two more times to the 5% level.

US stocks started the month of March in the red as investors continue to fear the prospect of higher for longer interest rates.

The inflation rate unexpectedly accelerated in Germany last month, and food inflation in the UK also surged, according to recent data. That's raising fears that the same thing could happen in the US. Any inflation readings that don't show meaningful deceleration raise the risk that interest rates will stay higher for longer.

The Federal Reserve is expected to hike rates at least two more times to the 5% level, but further increases could be possible.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Wednesday:

• S&P 500: 3,960.06, down 0.25%
• Dow Jones Industrial Average: 32,603.73, down 0.16% (52.97 points)
• Nasdaq Composite: 11,446.00, down 0.08%

Here's what else is happening this morning:

• Novavax sank as much as 25% after the COVID-19 vaccine maker warned it has "substantial doubt" about its ability to stay in business through next year.
• AMC Entertainment Holdings' stock tumbled after the movie-theater chain posted a deeper fourth-quarter loss than expected.
• Rivian's stock price sank after its 2023 production forecast came in well below expectations and it issued its third recall in 16 months.
• Hopes are building for big announcements from Elon Musk and Tesla at its investor day Wednesday. Master Plan 3, robotaxis, cheap EVs and solar power are thought to be high on Musk's list.

In commodities, bonds and crypto:

• West Texas Intermediate crude oil fell 0.65% to $76.55 per barrel. Brent crude, oil's international benchmark, dropped 0.37% to $83.14.
• Gold rose 0.40% to $1,844.00 per ounce.
• The yield on the 10-year Treasury rose three basis points to 3.95%.
• Bitcoin fell 0.46% to $23,683, while ether dropped 0.28% to $1,654.