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US retail sales rebound in Feb; weekly jobless claims fall

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Gasoline, food boost US producer prices in February

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Indexes down: Dow 0.4%, S&P 500 0.2%, Nasdaq 0.1%

(Updates to 1430 ET)

By Caroline Valetkevitch

NEW YORK, March 14 (Reuters) -

U.S. stocks edged lower on Thursday, with chipmaker stocks

extending losses for a second day, as a jump in producer prices

left investors wondering if the Federal Reserve might wait

longer than expected to cut interest rates.

Data showed U.S.

producer prices increased

more than expected in February as the cost of goods like

gasoline and food surged.

Rate-sensitive utilities and real estate

were the day's weakest sectors.

The Fed is expected to leave rates unchanged at its

policy meeting next week. The market has trimmed the odds of a

cut for at least 25 basis points at its June meeting to 62.9%,

CME's FedWatch Tool showed, down from 81.7% a week ago.

"If we take inflation as a whole, we've had relatively

hot inflation readings the last two months now, yet the market

has kind of powered higher," said Tony Welch, chief investment

officer of SignatureFD.

"Fed policy may not be as loose as the market wanted it

to be this year, but the prospect of further tightening still

remains a low probability."

Nvidia ( NVDA ) was down 3%, while an index of

semiconductors fell 1.4%.

The Dow Jones Industrial Average fell 135.11

points, or 0.35%, to 38,908.21. The S&P 500 lost 12.12

points, or 0.23%, at 5,153.19 and the Nasdaq Composite

dropped 14.88 points, or 0.09%, to 16,162.88.

The small cap Russell 2000 fell 1.9%.

Other data showed U.S. retail sales rebounded in February,

rising 0.6%, but less than the 0.8% advance expected.

Shares of Robinhood Markets ( HOOD ) rose 5.4% after the

trading app operator said its assets under custody rose 16% in

February.

Declining issues outnumbered advancers on the NYSE by a

3.98-to-1 ratio; on Nasdaq, a 3.01-to-1 ratio favored decliners.

The S&P 500 posted 39 new 52-week highs and no new lows;

the Nasdaq Composite recorded 54 new highs and 159 new lows.

(Additional reporting by Bansari Mayur Kamdar and Shashwat

Chauhan in Bengaluru; Editing by Pooja Desai and Richard Chang)