12:36 PM EDT, 03/15/2024 (MT Newswires) -- US benchmark stock indexes fell, led by technology, as government bond yields traded at their highest levels this month following this week's hotter-than-expected inflation data and ahead of the Federal Reserve's updated economic projections.

The S&P 500 fell 0.7% to 5,113.9, with the Nasdaq Composite down 1.1% to 15,957.2 and the Dow Jones Industrial Average 0.4% lower at 38,734.4. Technology, communication services, and consumer discretionary led the decliners intraday, while energy was the top gainer.

The US Treasury two-year yield rose 2.2 basis points to 4.72%, and the 10-year yield was little changed at 4.3%.

The market has so far been focused on June as the most likely time for the Federal Reserve to begin its easing cycle, according to a note from Deutsche Bank. "But this week's releases have led to growing doubts about that," referring to February's stronger-than-expected consumer and wholesale price inflation data.

There is now a one-in-three likelihood the Fed won't cut at all by June, said Jim Reid, head of global fundamental credit strategy at Deutsche Bank. And, for the full-year 2024, just 76 basis points of cuts are priced in by the December meeting, which is the fewest for this year. That's a turnaround from the start of 2024, when cuts expected by December were 158 basis points, with the first reduction fully priced in for March.

The Fed's policy meeting next week could be highly consequential, said a note from Macquarie. "That's because the [Federal Open Market Committee] will issue a new Summary of Economic Projections and new 'dots', which is likely to set the tone for the action that emerges afterward."

Meanwhile, in economic news, the University of Michigan's preliminary consumer sentiment index slipped to 76.5 in March from 76.9 in February, versus expectations for 77.1 in a survey compiled by Bloomberg.

US industrial production rose 0.1% in February, compared with expectations for a flat reading in a survey compiled by Bloomberg and following a downwardly revised 0.5% decrease in January.

In company news, Adobe's (ADBE) shares sank 14% intraday, the second-worst performer on the S&P 500, after the technology giant issued fiscal Q2 revenue guidance that trailed analysts' projections.