Dow drops more than 300 points as a hot inflation report rattles Wall Street: Live updates
[ad_1]
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 Industrial Average fell by 364 points, or 1.1%. The S&P 500 and Nasdaq Composite slid 1.4% and 2.0%, respectively. The Dow fell as much as 510 points, or 1.54%, earlier in the trading session.
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 major averages are headed for a losing week. The S&P 500 is down 2.9% and is set for its worst week since Dec. 9. The Dow is down nearly 3% this week and headed for its fourth straight losing week. The Nasdaq is 3.5% lower, and on pace for its second negative week in three.
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.
However, B. Riley's chief market strategist Art Hogan doesn't expect the market to remain in a protracted downturn.
"This market has been pretty jittery this week, so any disappointing data is going to have an outsized impact as we're seeing in the early movements," Hogan said. "This may test its recent lows, but I don't think it's going to push us to new lows. I think it's just more confirmation that the Fed is likely going to go to 5% and 5.25%, which is consensus."
"Therefore, I don't think this is enough to say the rally of 2023 is over. I just don't think that's the case. I think a lot of this is baked into what our expectations are for monetary policy already," he added.
Comments
Post a Comment