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Stock market news today: US stocks slide as inflation jumps more than expected – Yahoo Finance

U.S. stocks fell on Thursday morning even though December's inflation rate was slightly higher than economists expected, raising new questions about the Federal Reserve's interest rate policy.

The S&P 500 Index (^GSPC) fell about 0.6% on Wednesday after the benchmark closed at its highest close since January 2022, but fell just short of setting a new record. The Dow Jones Industrial Average (^DJI) and Nasdaq (^IXIC) fell 0.6%.

Stocks struggled this week as investors counted down December's U.S. consumer inflation data. This measure showed a slightly larger than expected increase as prices rose 0.3% month-over-month and 3.4% year-over-year. On a “core” basis, which excludes the volatile food and energy sectors, inflation rose 3.9% over the past year.

The print publication was seen as important for traders, who have been increasingly pricing in the possibility of a “soft landing” (inflation retreating to 2% without a recession) since the last CPI report.

Meanwhile, crypto stocks rose after the SEC on Thursday gave regulatory approval to begin trading in a spot Bitcoin ETF in the US, which is seen as a game-changer for the sector. Shares of exchanges Coinbase (COIN) and Miner Marathon Digital (MARA) were among the stocks that rose in pre-market trading.

Bitcoin (BTC-USD) trades above $47,000, its highest since March 2022, while rivals trade amid bets that the next-largest token will get the green light for an ETF. Ether (ETH-USD) soared.

Ahead of Friday's quarterly earnings report, Citigroup (C) announced that it would take more than $3 billion in one-time provisions and expenses to close the year. Given the dismal performance so far this year, fourth-quarter earnings season is critical for stocks.

live3 updates

  • Expectations for Fed rate cuts remain unchanged even if inflation rises higher than expected

    December's inflation report was slightly higher than Wall Street expected, but it hasn't swayed investors' view that the Fed's first rate cut could come in March.

    As of early Thursday morning, markets were pricing in about a 67% chance that the Fed would cut interest rates in March. Through the CME FedWatch toolalmost unchanged from the previous day's odds.

    “I don't think just delaying the rate cut will be enough,” Bank of America U.S. economist Stephen Juneau told Yahoo Finance Live. “We're looking for a march cut that's like a kick in the cut cycle. This is something that leaves the door open, never slams the door shut.”

  • Stock prices rise despite higher-than-expected inflation

    U.S. stocks rose Thursday morning even though December's inflation rate was slightly higher than economists expected, raising new questions about the Federal Reserve's interest rate policy.

    The S&P 500 (^GSPC) rose about 0.2% on Wednesday after the benchmark closed at its highest close since January 2022, but fell just short of setting a new record. The Dow Jones Industrial Average (^DJI) rose 0.1%, and the tech-heavy Nasdaq led the way, rising 0.3%.

  • Inflation rate exceeded expectations in December

    Thursday's much-anticipated inflation report showed consumer prices rose slightly more than expected in November.

    Let's take a quick look at the numbers:

    • Composite CPI, month-over-month: up 0.3% versus expected 0.2%

    • Total CPI, YoY: 3.4% vs. expected 3.2%

    • “Core” CPI, YoY: 3.9% vs. expected 3.8%

    Yahoo Finance's Josh Schafer has the details here.

For the latest stock market news and in-depth analysis of price-moving events, click here.

Read the latest financial and business news from Yahoo Finance

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