Dow closes 400 points lower as hot inflation report, comments from Fed's Bullard raise rate hike fears: Live updates
Stocks fell Thursday after another hot inflation report, and a decline in jobless claims, showed the economy is holding up amid the Federal Reserve’s rate hikes. The Dow Jones Industrial Average shed 431.20 points, or 1.26%, to close at 33,696.85. The S&P 500 dipped 1.38% to 4,090.41, and the Nasdaq Composite fell 1.78% to close at 11,855.83. Microsoft and Disney contributed the most to the Dow’s decline, down 2.66% and 3.12% respectively. Tesla shed 5.69% following a vehicle recall, weighing on the S&P 500.
Stocks slipped after January’s producer price index, another inflation measure, rose 0.7% on the month per Thursday’s report, while economists surveyed by Dow Jones expected a 0.4% increase. Initial jobless claims unexpectedly fell for the week ending Feb. 11, per a Labor Department report.
The new data comes after January’s consumer price index and retail sales report were both higher than expected, suggesting that the Fed may have further to go in its efforts to tame inflation.
Twilio jumped 19% after beat revenue expectations in its most recent quarter. The communications firm posted revenue of $1.02 billion, slightly better than the Refinitiv consensus estimate of $1 billion.
Roku shares gained more than 17% after the streaming device company reported a smaller-than-expected loss in its latest quarter, as well as greater revenue than analysts polled by Refinitiv were expecting.
Germany’s Commerzbank reported better-than-expected profits for the fourth quarter, prompting the bank’s share price to increase 8% in morning trading. The bank also forecasts results for this year will be “well above” those of 2022.
Source: CNBC, Investing.com