Anjali Sharma
GG News Bureau
NEW YORK, 15th Feb. According to news media reports on Wednesday the US stocks tumbled after fresh data revealed that inflation eased somewhat, but stayed stubborn in January.
The Dow Jones Industrial Average on Monday notched a record high close, while the S&P 500 retreated somewhat from a record high, media reported.
The Dow slid 527 points, or 1.4 per cent, the S&P 500 declined 1.4 per cent, while the Nasdaq Composite lost 1.7 per cent, the report said.
According to the US Bureau of Labor Statistics data released on Tuesday showed that the Consumer Price Index revealed that prices rose by 3.1 per cent for the 12 months ended in January.
On a monthly basis, CPI rose by 0.3 per cent last month, it stated.
Economists expected inflation to ease to 0.2 per cent from December and slow to 2.9 per cent annually, according to FactSet, news media reported.
According to the CME FedWatch Tool, traders largely expect the Federal Reserve to first cut rates in June or July.
Greg Wilensky, head of US fixed income at Janus Henderson Investors, wrote in a note “With this new data, a first cut in June seems like the most reasonable expectation unless we see a very quick, severe drop in labor market activity or a geopolitical shock.”
