The Dow Jones Industrial Average swung in volatile trading on Wednesday as investors weighed improving economic data with rising inflation expectations.
The blue-chip index fell 79.24 points to pause for lunch Wednesday at 31,443.51, supported by a jump in Verizon and Chevron shares.
The S&P 500 forfeited 29.58 points to 3,903.01, led by technology and materials.
The NASDAQ Composite tumbled 234.66 points, or 1.7%, to 13,812.84.
Dow-member Verizon was among the biggest gainers after Warren Buffett’s Berkshire Hathaway revealed a sizable stake in the telecom giant. The shares climbed 3.7% after the latest filing showed Berkshire bought more than $8 billion worth of the stock in the fourth quarter, making Verizon one of the conglomerate’s top six largest holdings.
Chevron jumped 3.5% as Berkshire revealed a large stake in the energy company as well last quarter.
The weakness in the broader market came as data showed retail sales surged 5.3% in January, blowing past a Dow Jones estimate of a 1.2% rise. The jump in consumer spending could further fuel inflation expectations, which have already pushed bond yields significantly higher recently.
Signs of a pickup in pricing pressures already emerged as the economy rebounds from the pandemic-induced recession with historic fiscal and monetary stimulus. The U.S. Labor Department said Wednesday the producer price index, a measure of the prices businesses receive for their goods and services, rose 1.3% in January, the biggest jump since the index began in December 2009.
Elsewhere in the market, bitcoin topped $51,000 U.S. for the first time as its dizzying surge to new record highs continued.
Prices for 10-Year Treasurys regained strength, lowering yields to 1.28% from Tuesday’s 1.31%. Treasury prices and yields move in opposite directions.
Oil prices gained 28 cents to $60.33 U.S. a barrel.
Gold prices dropped $25.90 to $1,773.10