The main Wall Street indices came under heavy downward pressure on Thursday after US data showed inflation continued to rise earlier in the year.
The S&P 500 Index was last seen losing 1.15% to 4,535, the Dow Jones Industrial Average was down 0.75% at 35,500 and the Nasdaq Composite lost 1.4% to 14,285.
The US Bureau of Labor Statistics reported that inflation, as measured by the Consumer Price Index (CPI), jumped to 7.5% annually in January from 7% in December. This reading exceeded the market expectation of 7.3%. Also, the core CPI, which breaks down food and energy prices, rose 5.5% to 6%, compared with analysts’ estimate of 5.9%.
Meanwhile, the benchmark 10-year US Treasury yield is up nearly 3% on the day to 2% and CME Group’s FedWatch tool shows markets are pricing in a 50.2% chance. of a 50 basis point Fed rate hike in March.
Source: Fx Street
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