Another Hot Inflation Report Scorches Markets - InvestingChannel

Another Hot Inflation Report Scorches Markets

Stocks fell Thursday after another hot inflation report, and a decline in jobless claims, showed the economy is holding up amid the Federal Reserve’s rate hikes.

The Dow Jones Industrials capsized 333.64 points, or 1%, to begin Thursday at 33,794.41

The S&P 500 was off 37.44 points to 4,110.16.

The NASDAQ Composite dumped 108.39 points to 11,962.21.

Goldman Sachs, Microsoft and Amgen contributed the most to the Dow’s decline, losing more than 1% each. Every S&P 500 sector fell, with real estate, utilities and industrials leading the way lower.

January’s producer price index, another inflation measure, rose 0.7% on the month while economists surveyed by Dow Jones expected a 0.4% increase. Initial jobless claims unexpectedly fell for the week ending February 11, per a Labor Department report.

The new data comes after January’s consumer price index and retail sales report were both higher than expected, suggesting that the Federal Reserve may have further to go in its efforts to tame inflation.

Prices for the 10-year Treasury fell hard, raising yields to 3.84% from Wednesday’s 3.80%. Treasury prices and yields move in opposite directions.

Oil prices was ahead seven cents to $78.66 U.S. a barrel.

Gold prices dropped $4.60 to $1,840.70 U.S. an ounce.

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