Wall Street falls after inflation data showing growth
2023.02.16 10:27
Wall Street falls after inflation data showing growth
By Kristina Sobol
Budrigannews.com – After producer price data that came in higher than expected rekindled concerns about interest rates, U.S. stocks fell.
The Dow Jones Industrial Average was down 354 points, or 1 percent, at 9:55 ET (14:55 GMT), the S&P 500 was down 1.1%, and the NASDAQ Composite was down 1%.
Producer prices increased by 0.7 percent in January, according to the Labor Department, following a decrease of 0.2 percent in December. A monthly increase of 0.4% was anticipated by analysts. From a 6.5% increase in December, producer prices increased by 6% in January for the year. However, analysts anticipated a 5.4% increase.
When it meets next month, investors anticipate that the Federal Reserve will raise interest rates by a quarter of a percentage point. However, there had been hope that the Fed’s rate-hiking cycle was coming to an end. The Fed may be prompted to maintain its aggressive stance for a longer period of time by data that is hotter than expected.
These worries are also being fueled by the robust labor market. Last week, claims for unemployment fell unexpectedly. Analysts had expected 200,000 initial claims to fall last week to 194,000.
Roku Inc. shares (NASDAQ: ROKU) gained 13.3% following the streaming television device manufacturer’s 16% increase in active users and surpassing revenue expectations for the fourth quarter. It also expects its streaming devices and content platform to drive strong growth in the current quarter.
Shopify Inc. shares (NYSE: Despite reporting a surprise profit in the fourth quarter, the e-commerce platform for businesses revealed a weaker-than-anticipated financial outlook, causing SHOP) to fall 15.7%.
Cisco Systems Inc. shares (NASDAQ: CSCO) gained 6% following strong second-quarter results and a rise in the company’s full-year earnings forecast. The expenditures for network infrastructure have not changed.
Oil was going up. Brent Oil Futures rose 0.5 percent to $85.81 a barrel, while Crude Oil WTI Futures rose 0.6 percent to $79.09 a barrel. The price of Gold Futures decreased by 0.3 percent to $1,838.
