The stock markets traded  less vigorously than expected amid rising inflation concerns that came out of newly released wage data.

All three major stock indices closed on Monday slightly higher than the previous day, with the Dow Jones up 0.38%. The S&P 500 closed with an increase of 0.32% over the previous day, and the Nasdaq Composite closed with an increase of 0.35%.The US employment cost index rose 1.2% for March, which is higher than expected. That index measures the income for civilians, and the data caused the treasury yields to jump as well. As wages increase, that is often an indicator that inflation is going up as well.

Even though the stock market has closed up for two consecutive days, April has been a low month overall, and it looks like this will be the first month the stock market has lost ground since October of last year.

Holding back the market is the decision from the Federal Reserve on interest rate cuts. The Fed has continued to push those back, and the earliest that we expect to see rate cuts now is in September. The Nasdaq Composite, as well as the S&P 500 are both looking at decreases of about 2% each. The Dow Jones Industrial Average may be looking at a greater than 3% loss for the month.

Two Major Stocks Fell

On Monday, McDonald’s stock dropped 2%, partially due to boycotts over the franchise in Middle Eastern countries. This marks the first time in two years that the fast food giant has missed its profit target.

Coca-Cola shares fell too, despite the company posting revenue numbers that came out ahead of estimates. The company beat share earnings and revenue predictions, but these were slight wins, and the stock suffered as a result of its marginal improvements.