AP Photo/Nati Harnik, File
- US stocks fell Thursday on persistent inflation worries, as wholesale prices rose month over month in January by 0.7%.
- That followed a hotter-than-expected reading on consumer prices earlier this week.
- Cleveland Fed President Loretta Mester said a rate hike of 50 basis points would've been appropriate at the February FOMC meeting.
US stocks dropped Thursday as worries about inflation remained on center stage after the release of wholesale-level data and hawkish comments from a Federal Reserve official.
All three of the market's main equity benchmarks were soaked in red after Cleveland Fed President Loretta Mester said she saw "a compelling economic case for a 50-basis-point increase" in the fed funds rate at the previous meeting of policymakers, who instead raised rates by half that.
Stocks were already losing ground after the Labor Department's producer price index report showed wholesale prices climbed 0.7% in January after they fell by 0.2% in December. The headline rate of 6% year over year marked a decline from 6.5% in December year on year.
Here's where US indexes stood at the 9:30 a.m. opening bell on Thursday:
- S&P 500: 4,101.30, down 1.12%
- Dow Jones Industrial Average: 33,832.72, down 0.87% (295.33 points)
- Nasdaq Composite: 11,905.32, down 1.37%
Here's what else is happening today:
- George Soros' fund revealed it's betting against crypto-friendly bank Silvergate.
- Mike Novogratz said he'll be "the happiest guy" if bitcoin ends the year at $30,000 given the crypto market headwinds.
- Berkshire Hathaway's Charlie Munger said Elon Musk is gifted but weird - and ranks Tesla-rival BYD among his best bets.
In commodities, bonds, and crypto:
- Oil prices were mixed. West Texas Intermediate crude edged up 0.1% to $78.63 per barrel. Brent crude, the international benchmark, fell 0.2% to $85.18.
- Gold slipped less than 0.1% to $1,844.70 per ounce.
- The 10-year Treasury yield picked up 1 basis point to 3.81%.
- Bitcoin rose 1.4% to $24,528.01.