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Adobe drops after dour Q2 revenue forecast

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Micron Technology ( MU ) gains after Citi lifts PT

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Indexes down: Dow 0.38%, S&P 0.66%, Nasdaq 0.88%

(Updated at 10:02 a.m. ET/ 1402 GMT)

By Bansari Mayur Kamdar and Shashwat Chauhan

March 15 (Reuters) -

Wall Street's main stock indexes dipped on Friday on worries

that sticky inflation could impact the timing of the first

interest-rate cuts by the Federal Reserve, roiling

rate-sensitive stocks ahead of the central bank's meeting next

week.

Indexes closed lower on Thursday after producer prices data

was stronger than expected, adding to concerns around inflation

and sending the yield on the 10-year note to a

two-week high.

Traders reined in bets of a June rate cut by the Fed to

about 57% from 73% last week, according to the CME FedWatch

Tool.

All eyes are now on next week's Federal Reserve meeting for

possible clues on the timing of the central bank's rate-easing

cycle.

"(People are looking for) more of the conversation that

comes out of the Fed meeting indicating the probability of rate

cuts this year, and then the subsequent release of the dot plots

around where the Fed is expecting the future path of interest

rates to go," said Russell Hackmann, president at Hackmann

Wealth Partners.

Adding to worries, production at U.S. factories increased

more than expected in February, but data for the month prior to

that was revised sharply down, as manufacturing remains

hamstrung by higher interest rates.

The University of Michigan's preliminary reading on the

overall index of consumer sentiment came in at 76.5 this month,

versus an estimated reading of 76.9.

Friday also marked the simultaneous expiry of quarterly

derivatives contracts tied to stocks, index options and futures,

also known as "triple witching".

At 10:02 a.m. ET, the Dow Jones Industrial Average

was down 149.00 points, or 0.38%, at 38,756.66, the S&P 500

was down 33.83 points, or 0.66%, at 5,116.65, and the

Nasdaq Composite was down 141.76 points, or 0.88%, at

15,986.77.

Eight of the 11 major S&P 500 sectors were trading

lower, with information technology being the worst

hit, down 1.4%.

Most megacap growth stocks were under pressure, with

Microsoft ( MSFT ) down 1.7%, while AI giant Nvidia ( NVDA )

lost 0.6%.

Semiconductor stocks fell 0.8%, on track to snap

their three-week winning streak. The global GTC developer

conference from March 18 to 21 will be watched closely for

AI-related announcements.

Micron Technology ( MU ), however, rose 1.9% after brokerage

Citi raised its price target on the company to $150, the highest

on Wall Street for the chipmaker, according to LSEG data.

Adobe shed 13.7% after it forecast second-quarter

revenue below analysts' estimates, following stiff competition

and weak demand for its AI-integrated photography, illustration

and video.

Ulta Beauty ( ULTA ) slid 6.7% after forecasting full-year

profit below Wall Street estimates, as elevated supply-chain

costs and increased promotions hurt its margins.

Of the 498 companies in the S&P 500 that have reported

quarterly earnings to date, 76.1% beat analyst expectations,

according to LSEG data.

Advancing issues outnumbered decliners by a 1.08-to-1 ratio

on the NYSE and by a 1.12-to-1 ratio on the Nasdaq.

The S&P index recorded 14 new 52-week highs and no new

lows, while the Nasdaq recorded 24 new highs and 71 new lows.