Stocks faced a decline on Tuesday as hotter-than-expected inflation data for January led to a spike in Treasury yields, casting doubt on the Federal Reserve’s ability to cut rates multiple times this year. This has been a key consideration in the bullish outlook for the equity market.
The Dow Jones Industrial Average dropped by 331 points, representing a 0.9% decrease. The S&P 500 experienced a 1.4% slide, while the Nasdaq Composite fell by 2.1%.
In January, the consumer price index (CPI) saw a 0.3% increase from December. On an annual basis, CPI rose by 3.1%. Economists surveyed by Dow Jones had anticipated a 0.2% month-over-month rise in January and a 2.9% increase year-over-year.
When excluding volatile food and energy components, core prices showed a 0.4% monthly increase and a 3.9% rise from the previous year. Projections indicated core CPI to have risen by 0.3% in January and 3.7% from a year earlier.
Source (CNBC)
