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US Stock Market Declines Over 1% as Inflation Data Dampens Rate Cut Hopes

ByEditor

Feb 13, 2024

US stocks fell on Tuesday after the release of inflation data that was worse than expected. This caused a decline in hopes of an interest rate cut in May. At 9:42 a.m. ET, the Dow Jones Industrial Average was down 427.32 points, the S&P 500 was down 66.94 points, and the Nasdaq Composite was down 303.61 points.

Shares of Microsoft fell 2.3 per cent and Nvidia lost 2.1 per cent. Additionally, chip stocks such as Micron Technology, Advanced Micro Devices and Broadcom dropped between 2.5 per cent and 4.5 per cent. However, shares of Coca-Cola gained 1.2 per cent as the company beat expectations for fourth quarter revenue.

A Labor Department report showed US consumer prices rose more than expected in January. This was attributed to a rise in the costs of shelter and healthcare. The inflation data caused Treasury yields to jump, with the 10-year Treasury rising to 4.25 per cent from 4.18 per cent late on Tuesday and the 2-year yield leaping to 4.57 per cent from 4.47 per cent.

Asian stock markets were mixed on Tuesday, with Japan’s Nikkei 225 edging up 2.9 per cent at 37,963.97 and Hong Kong’s Hang Seng Index and China’s Shanghai Composite closed for a holiday. Oil prices also edged up on Tuesday due to uncertainties over fighting in the Middle East.

Gold prices rose on Tuesday, with spot gold up 0.4 per cent at $2,027.99 an ounce by 1145 GMT and US gold futures up 0.4 per cent at $2,041.80. Livemint topped the charts as the fastest growing news website in the world.

By Editor

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