US stocks fall after inflation cools less than anticipated

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• Tue, February 13, 2024 at 4:38 PM GMT+2

  Stocks open in the red

  A hotter than expected January Consumer Price Index report sent stocks tumbling on Tuesday.

  S&P 500 (^GSPC) sank 1.3%, after the benchmark faltered Monday in its bid to keep its historic rally above 5,000 going. The Dow Jones Industrial Average (^DJI) fell about 0.9%, losing grip of a record closing high, while those on the tech-heavy Nasdaq Composite (^IXIC) dropped about 2% to pace declines.

  The Technology (XLK), Consumer Discretionary (XLY) and Real Estate (XLRE) sectors were all down about 2%.

  

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  Tue, February 13, 2024 at 3:33 PM GMT+2

  Prices increase more than expected in January

  Consumer prices increased more than expected in January.

  The January Consumer Price Index (CPI) showed prices ticked up slightly at 0.3% over last month, an increase from the 0.2% seen in December. Prices rose 3.1% over the prior year, a decrease from the 3.4% increase seen the month prior.

  Economists had expected prices to increase 0.2% month over month and rise 2.9% year over year, according to Bloomberg data.

  When removing the volatile food and energy categories, “core” inflation remained unchanged from the month prior at an annual rate of 3.9%. Economists surveyed by Bloomberg had expected core inflation of 3.7%. On a monthly basis, core inflation was 0.4%, up unchanged from the 0.3% seen the month prior.