Forbes Media CEO Steve Forbes and Public Ventures President Lou Basenise are reacting to the drop in stock prices due to a higher-than-expected rise in the consumer price index.
U.S. stocks fell broadly after a better-than-expected inflation report could jeopardize the Federal Reserve’s plans to cut interest rates.
The Dow Jones Industrial Average fell more than 500 points, or 1.4%, in intraday trading, its worst trading pace in 11 months.
The benchmark has erased nearly half of its 2024 gains.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| Me: DJI | Dow Jones Average | 38123.9 | -673.48 | -1.74% |
Consumer prices rose by an annualized 3.1% in January, beating the 2.9% forecast by economists polled by Refinitiv. The producer price index, which will be released on Wednesday, will also be closely watched.
Consumer inflation heats up in January
“We continue to expect the FOMC to keep the federal funds rate unchanged at its March meeting and begin an easing cycle in May,” Goldman Sachs chief economist Jan Hadsius said in a note to clients on Tuesday.
More than 91% of market participants agree with Mr. Hadzius, while a majority, 62%, do not expect any action at the May meeting, according to CME’s Fed Watch tool.
Dow Jones Industrial Average
The S&P 500 and Nasdaq Composite fell 1.3% and 1.5%, respectively.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| SP500 | S&P500 | 4938.57 | -83.27 | -1.66% |
| I: Comp | Nasdaq Composite Index | 15623.270309 | -319.28 | -2.00% |
Real estate, utilities and financial stocks fell faster across the market, while energy and health care stocks fell the least.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| XLRE | Select Sector SPDR Trust Real Estate Select Sector S | 38.29 | -0.12 | -0.31% |
| XLU | Utilities Select Sector SPDR ETF | 59.74 | -1.25 | -2.05% |
| XLF | Financial Select Sector SPDR ETF | 39.26 | +0.18 | +0.46% |
| XLE | Energy Select Sector SPDR ETF | 84.23 | +0.92 | +1.10% |
| XLV | Healthcare Select Sector SPDR ETF | 144.21 | +0.20 | +0.14% |
