US stocks fell on Thursday, with majors technological at the head of the descents, following inflation data raised the fear that Booking Federal act in a way aggressive to stop her.
The S&P 500 dropped 1.8%, the dow jones fell 1.5% and the Nasdaq it finished 2.1% down.
The Labor Department report showed that consumer prices jumped a 7.5% year-on-year in Januarybeating economists’ estimates of 7.3%. It was the largest annual increase in inflation in 40 years.
Traders are now betting that the Fed will start raising interest rates at its March meeting and currency markets point to a 50% chance of a half-point rise next month, compared to 30% prior to data publication.
”The CPI was a bit high and does not suggest that inflation will peak any time soon. Could make the Fed more aggressivesaid Peter Cardillo of Spartan Capital Securities.
Eight of the 11 major S&P 500 sectors were down in early trading. and technology stocks fell 1%.
Mega-cap growth papers such as Apple Inc, Alphabet Inc, Microsoft Corp and Amazon.com Inc, which tend to be hurt by rate hikes, fell between 0.7% and 1.2%.
However, bank shares such as Wells Fargo & Co, Bank of America Corp and Citigroup Inc gained between 0.6% and 1%, while benchmark 10-year Treasury yields topped 2% for the first time in two-and-a-half years.
(With information from Archyde.com)
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