Wednesday saw a sharp decline in stocks and a surge in interest rates as consumer prices increased more than anticipated in January, sparking fears that inflation would flare up again.
The Dow Jones Industrial Average experienced a 0.5% decline, or 237 points. The Nasdaq Composite saw a 0.1% increase in trading, while the S&P 500 saw a 0.2% decline.
“The higher than anticipated CPI validates investors’ concerns about excessively high inflation, which will prevent the Fed from reducing interest rates,” stated Sameer Samana, head of global stocks and real assets at Wells Fargo Investment Institute.
“The trajectory will be more choppy than the previous two years, even though risk markets may rise.”
Source (CNBC)
