Apprehension over Inflation Drives Stocks Straight Down - InvestingChannel

Apprehension over Inflation Drives Stocks Straight Down

U.S. stocks fell sharply Friday after the Federal Reserve’s preferred inflation gauge showed a stronger-than-expected increase in prices last month.

The Dow Jones Industrials thundered lower 450.31 points, or 1.4%, to lead off Friday at 32,703.60.

The S&P 500 dropped 62.32 points, or 1.6%, to 3,950.

The NASDAQ Composite shed 221.74 points, or 1.9%, to 11,368.66.

The major averages are headed for a losing week. The S&P 500 is down 1.6% through Friday’s open, and is set for its worst week since Dec. 16. The Dow is down nearly 2% this week, and headed for its fourth straight losing week. The NASDAQ is 1.7% lower, and on pace for its second negative week in three.

Boeing shares slipped more than 4% after the company temporarily halted delivery of its 787 Dreamliners over a fuselage issue. Shares of

Microsoft and Home Depot also fell more than 1%.

The core personal consumption expenditures price index, the Fed’s preferred measurement of inflation, rose 0.6% in January and 4.7% from the prior year, coming above economists’ expectations.

The report added to worries that the Fed may have to keep rates higher for longer to quell inflationary pressures.

Prices for the 10-year Treasury sagged, raising yields to 3.95% from Thursday’s 3.89%. Treasury prices and yields move in opposite directions.

Oil prices lost $1.19 to $74.20 U.S. a barrel.

Gold prices were thumped $9.30 to $1,817.50 U.S. an ounce.

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