New U.S. inflation data unnerved investors
U.S. indexes ended in the red after another hot inflation data, and a drop in jobless claims showed the economy is holding up even as the Federal Reserve continues to raise interest rates, CNBC writes.
The blue-chip Dow Jones Industrial Average shed 431.20 points, or 1.27%, to 33,696.85
The broad S&P 500 fell 1.38 percent to 4,090.41, and the tech-heavy Nasdaq Composite sank 1.78 percent to end at 11,855.83.
Microsoft and Disney were the biggest contributors to the Dow’s decline, down 2.66 percent and 3.12 percent, respectively. Tesla shed 5.69% of its stock after it emerged it was pulling cars, weighing on the S&P 500.
Stocks ended up in the red after data showed the consumer price index rose 0.7 percent in January, while economists polled by Dow Jones had expected a 0.4 percent rise. First-time claims for unemployment benefits fell surprisingly in the week to February 11, a Labor Department report revealed.
St. Louis Federal Reserve Governor James Bullard’s comments that he advocated a 50-basis-point rate hike at the central bankers’ last meeting may also weigh on the market. The Fed’s Cleveland governor also said he supports a bigger increase.
Meanwhile, investors continue to monitor the earnings season for any signs of consumer demand. Dropbox, DoorDash and KraftKings are due to report their financial results after the stock market closes.
