Inflation doesn’t seem to be going away anytime soon. And that’s weighing on Wall Street.
Inflation doesn’t seem to be going away anytime soon. And that’s weighing on Wall Street.
Stocks tumbled Thursday morning after the US government’s Producer Price Index report showed that prices at the wholesale level rose faster than expected in January. The Dow fell about 250 points, or 0.7%, in mid-morning trading. The S&P 500 was down 0.8% and and the Nasdaq 0.6% lower.
The unwelcome inflation news comes just two days after the Consumer Price Index figures showed that retail prices continue to come in above forecasts.
Strong retail sales numbers Wednesday and another decline in the number of people filing for weekly jobless claims Thursday added to concerns that the economy remains hotter than the Fed would like.
Investors also were unnerved by comments from Cleveland Federal Reserve president Loretta Mester about inflation and the economy.
