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Stocks slumped and interest rates spiked Wednesday after consumer prices rose more than expected in January, raising concern that inflation may reignite.
The Dow Jones Industrials came off its lows of the morning, but remained behind Tuesday’s close by 176.86 points to 44,416.79
The S&P 500 dropped 13.3 points to 6,055.20
The tech-heavy NASDAQ found its way into the plus column, 1.63 points to 19,645.49.
A broad selloff ensued following the release of CPI. Shares of some mega-cap technology stocks, including Amazon and Alphabet, declined.
Consumer shares and bank stocks at risk of slower spending and a weaker economy also retreated. Tesla bucked the trend and gained more than 4%, meanwhile. Apple, Intel and Palantir also traded higher, helping curb losses. CVS Health shares popped more than 14% on a major fourth-quarter earnings beat.
January’s consumer price index jumped 0.5% for the month, putting the annual inflation rate at 3%. Both were more than the 0.3% and 2.9% increases expected by economists polled by Dow Jones. Excluding volatile food and energy prices, core CPI rose 0.4% on the month and 3.3% for the past 12 months, both higher than expected.
Prices for the 10-year Treasury were bruised, raising yields to 4.63% from Tuesday’s 4.54%. Treasury prices and yields move in opposite directions.
Oil prices settled $1.72 to $71.60 U.S. a barrel.
Prices for gold backed off 90 cents an ounce to $2,931.70 U.S.
