Saturday, May 18, 2024
HomeTrading RoomA Scorching Inflation Data Sends Wall Street Into A Tailspin As The...

A Scorching Inflation Data Sends Wall Street Into A Tailspin As The Dow Collapses More Than 300 Points: Constant Updates

As the Federal Reserve’s preferred inflation index revealed a stronger-than-anticipated increase in prices last month, U.S. markets plunged Friday.

A 386-point (1%) decline in the Dow Jones Industrial Average was recorded. The S&P 500

respectively fell 1.4% and 1.8% on the Nasdaq Composite.

The Fed’s favored inflation gauge, the core personal consumption expenditures price index, increased by 0.6% in January and 4.7% from the previous year, above economists’ predictions.

The data increased concerns that the Fed could need to maintain higher rates for a longer period of time to reduce inflationary pressures.

Art Hogan, chief market strategist at B. Riley, doesn’t anticipate a protracted fall in the market, though.

As we can see from the market’s early swings, Hogan added, “This market has been quite twitchy this week, so any negative data will have an outsized impact.” I don’t believe this will cause us to reach new lows, but it may test its previous lows. It’s just more evidence, in my opinion, that the Fed will probably increase rates to the mainstream range of 5% and 5.25%.

Hence, I don’t think this is sufficient to declare that the rally of 2023 is finished, he continued. I simply don’t believe that to be the case. I’ll say that a lot of this is already factored into our expectations for monetary policy.

A dismal week is expected for the major averages. By Thursday, the S&P 500 was down 1.64%, and it is projected to have its worst week since December 16. The Dow is set for its fourth consecutive losing week as it is down about 1.99% this week. The Nasdaq is down 1.67% and is expected to have its second down week in three weeks.

After the business temporarily stopped shipping its 787 Dreamliners due to a fuselage problem, Boeing shares fell more than 4%.

Source (CNBC)

- Advertisment -

Most Popular

Recent Comments