Stocks Step Backward on Inflation Report - InvestingChannel

Stocks Step Backward on Inflation Report

Stocks fell on Tuesday, after an early morning bounce gave way to selling as investors weighed the latest U.S. inflation data. The report showed another sharp increase in prices for last month.

The Dow Jones Industrials slid 87.72 points to 34,220.36.

The S&P 500 retreated 15.08 points to 4,397.45

The NASDAQ Composite faded 40.38 points to 13,371.57.

Tech stocks gave up earlier gains after popping to start the day. Microsoft dropped 1%, and Nvidia fell 2%.

Energy stocks tracked oil prices upward. Occidental Petroleum jumped 2.5%, Devon Energy gained 4%, Marathon Oil popped 5.1% and Chevron spiked 2.3%.

Consumer prices for March increased 1.2% month-to-month and 8.5% annually, the Labor Department said on Tuesday. But traders were focusing on the core reading, which excludes food and energy prices.

Core CPI in March increased 0.3%, below the consensus economist estimate from Dow Jones of 0.5%. Core prices on an annual basis were up 6.5%.

Treasury prices gained ground, putting yields back down to 2.73%, from Monday’s 2.77%. Treasury prices and yields move in opposite directions.

Oil prices regained $6.44 to $100.73 U.S. a barrel.

Gold prices jumped $22.00 to $1,978.10 U.S. an ounce.

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