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U.S. stocks are falling after hot inflation data stokes rate fears

AuthorLiz Moyer
Published 02/24/2023, 10:01 AM
Updated 02/24/2023, 10:34 AM
© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks were falling after fresh data showed prices accelerated in January, stoking fears about interest rates.

At 10:31 ET (15:31 GMT), the Dow Jones Industrial Average fell 490 points or 1.5%, while the S&P 500 was down 1.6% and the NASDAQ Composite was down 2.1%.

A key inflation measure used by the Federal Reserve, called the personal consumption expenditure index, rose 0.6% in January, faster than the 0.2% gain in December. 

On an annual basis, PCE rose to 5.4% in January from a 5.3% gain in December. Core prices, stripping out fuel and food, rose 0.6% and 4.7% for the month and year, respectively. The readings were higher than expected.

Hotter-than-expected inflation could encourage the Fed to keep interest rates higher for longer. The market expects the central bank to raise rates by a quarter of a percentage point in March and again in May. The policy rate is expected to reach 5.36% by mid-summer and could remain elevated for the rest of 2023.

Shares of Carvana Co (NYSE:CVNA) sank 16% after the used car dealer known for its car vending machines posted a wider-than-expected loss and declining revenue in the fourth quarter because demand for used cars has dwindled. 

Boeing Co (NYSE:BA) stock fell 4.4% after the plane maker suspended deliveries of its Dreamliner 787 model to examine a fuselage component.

Oil was falling. Crude Oil WTI Futures were down 0.7% to $74.89 a barrel, while Brent Oil Futures were down 0.4% to $81.91 a barrel. Gold Futures fell 0.4% to $1,819.

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Latest comments

Inflation control without energy independence is foolish of they are naive to this reality; evil if they know what they are doing. Unfortunately, the latter is true.
energy independence did NOT start under Trump. Nothing useful or beneficial started under Trump.
 "It is true that we achieved both of those energy independence milestones under President Trump. What isn’t true, is that it was because of anything special that he did. His energy policies may have helped a bit, but the primary cause was a surge in domestic oil and gas production that occurred as a result of the fracking boom."  --  www.forbes.com/sites/rrapier/2022/10/01/us-energy-independence-has-grown/
which none of you wants to credit Obama for😂
Inflation is a genie that's hard to get back into the lamp
Inflation was never in the lamp
it’s sad no one understands this
Nixon thought that he knew how…wage/price controls. He wasn’t wrong. Just not very effective.
And the Friday FRAUD unfolds in broad daylight, as another miracle "recovery" is underway.  That's right, savvy "investors" just love "buying the dip" on the Friday, and running the laughingstock of the investing world up before the weekend.  More flagrant, CRIMINAL MANIPULATION in the BIGGEST INVESTMENT JOKE IN THE WORLD.
learn how to trade mitch. you're the best whiner I've ever seen.
Zigzag. One day inflation, one day strong job data ,one day lay offs , one day Biden visiting Ukraine , one day nuke... jokes a part stop the war and stop supplying weapons and seat in a table. I think USA still has that power but it is thinking otherwise.
Of course inflation. Why you don't write truth. That you made economic nightmare. People were trusted and you made this. For this can not Russia and Ukraine.
Oil prices falling? Ha. That's good news. Look at where oil prices were start of 2021 versus start of 2022. Imagine where oil prices will be when Russia and Ukraine stop fighting
Imagine where oil price will be when Putin orders general advance.
it's temporary
  Keep up.  That's ordered already.
always same headline
Stocks have been falling and inflation rising for over a year. Yet, people act like we are supposed to be surprised. Yawn
There are other articles w/ other headlines.
Biden causes it all.
he washes dishes. that's why he is so bitter
stephen! mark! when I say 5 minute break, I mean 5 minutes. get back to work bitc#es!
  Cash tips are taxable.  Max wouldn't do as Trump and cheat on his taxes.
out of Control inflation....0.25%???? naaa minimum is 0.5 but it should be at least 0.75 %if Fed really wanted to tame inflation....
The Fed have more considerations than just inflation.
The 13 year US stock and real estate bubble has finally collapsed
Is more than only 13 years
If it has already collapsed, then it's time to buy the bottom.
A ceasefire in the Ukraine war would be nice right now for the markets.
in your dreams troll..
if russia actually labels it a WAR like biden and the rest of his admin has been labeling it, she can send in millions of solders into east ukraine
putin already called it a war you trog.. seems russia has run out of both weapons and manpower.. maybe you should volunteer, instead of trolling this comments section?
is my burrito $16 now? it was $14 3 months ago
1200 RUB cool guy
1200.. you got skinned man! try babushka-bell on the east side of gorky park, only 500 comrade
the WH says the russian people are starved for money, yet I see them blowing cash everywhere in asia and BEYOND
gold ky karna buy ya sell
Bidenomics, with contribution from Putinomics! See Ken?
what Obama? you sheep cover for Obozo
 Obama?  you mean the same guy in the White House for 8 years and during which time the US stock markets tripled?  that guy?  and you might want to google and find out who his VP was........
you mean the guy in charge of the slowest recovery in US history? was 8 trillion now its 10. Trump was definitely wrong for passing that pandemic relief that the house controlled democrats sent him. makes Bidens deficit look way worse, since he didn't have a pandemic
FED pivot pretty much out of the question until 2025.
It going to be a while for sure. Hopefully Congress will slow spending this year.
🤣🤣🤣
High inflation will continue until reckless government overspending ends. Unlikely to see this under Dems.
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