Dow concesses 400 points as CPI indicates that inflation is warmer than expected star-news.press/wp

Dow fell on Wednesday afternoon for 225 points, because the latest inflation data is higher than expected. The report comes as in progress Tatruff was He has already placed fear among investors regarding greater inflation, because it means that in a smaller chance that the FED would mitigate the interest rate this year.

In the afternoon, the Dow Jones Industrial average amounted to 225 points or 0.5%. Technically heavy Nasdaq recovered a little, adding 0.03%, while S & P 500 dipped 0.2%. Meanwhile, 10-year-old corneal fingers climbed above 4.6%.

Bureau for work statistics reported Wednesday that Consumer Price Index (CPI) rose by 0.5% of last monthafter an increase of 0.4% in December. This increase was greater than 0.3% which predicted Wall Street street, according to estimates composed per factor (FDS-0.34%). In addition, the CPI has increased by 3% compared to the previous year, surpassing expectations.

Basic inflation, no volatile food and energy, in January rose 0.4%, BLS said, while analysts were expecting an increase of 0.3% compared to the month earlier. During the year, basic inflation increased by 3.3%, while analysts were expecting basic inflation to pass to 3.1% with 3.2%.

“Today’s data reaffirms Powell’s decision to put a reduction rate on the back burner,” Charlie RipleySenior Strategist Investment Management Allianz (Alv+ 0,19%), he said in the e-mail quartz.

“Overall, today’s inflation data should force market participants to mix the Federation’s ability to cut the rates this year, especially given the growth of prices larger with any directional activities from the White House.”

Robusting is up, Reddit is down

Robination (Hood+ 5.43%) Reported earnings Once the market is closed, which leads to an increase of 13% in its shares. The trading platform exceeded expectations, and sold increased by 115% in the year.

Contrary to that, Giant Reddit Social Media (Red+ 0.91%) He was sharply shocked after the hour while the company missed the expectations of analysts.

Earlier in the day, Chipmaker Super Micro Computer actions (SMCI+ 2.98%) Rose After reporting earnings the day before. CVS Health Corporation (CVS+ 16.25%) He also jumped after the announcement of the earnings that exceeded the expectations of analysts.

– William Gavin contributed to an article