Dow Set to Open Down Ahead of CPI Report
Stocks sell off broadly, with the tech sector taking a bigger blow after back-to-back hot inflation prints suggest a stalling of price deceleration.
The Dow Jones Industrial Averaged fell 440 points, or 1%, at the open. The S&P 500 fell 1.1%, and the tech-heavy Nasdaq Composite was down 1.2%.
Consumer inflation rose 3% in January, according to the Bureau of Labor Statistics, propelled partly by higher prices of groceries.
Investors should keep an eye on the 6,000 level for the S&P 500. The index has been dancing around that level for about two months and any sustained trading below that level will send a strong pessimistic signal.
Bonds were also getting hurt. The 10-year Treasury yield breached the 4.6% level for the first time in about two weeks. Yields were higher across maturities.
This is the first inflation report under the new administration. Donald Trump, in a post on Truth Social, blamed the prior administration saying, “BIDEN INFLATION UP!”