NEW YORK - US stocks tumbled on Friday as stronger-than-expected wholesale prices triggered renewed jitters that the Federal Reserve would press on with an aggressive stance to counter inflation.
The market has been buffeted this week by lingering recession fears, and concern that the US central bank would keep up its steep rate hikes to cool the world’s biggest economy.
While consumer and wholesale inflation show signs of easing, data released on Friday showed that producer prices still remained elevated.
The S&P 500 shed 0.7 per cent, finishing at 3,934.38, while the Dow Jones Industrial Average lost 0.9 per cent to end at 33,476.46.
The tech-rich Nasdaq Composite Index slipped 0.7 per cent as well to 11,004.62.
“Wall Street had a somewhat mixed day of economic data,” said Edward Moya of the OANDA trading platform.
“A hot (producer price index) report was then countered by a University of Michigan report that showed inflation expectations are coming down quickly,” he said in a note.
For now, investors are keeping a close eye on economic data next week, with Tuesday’s closely-watched consumer price index to indicate whether inflation is easing.
While the Fed has raised the benchmark lending rate aggressively to tamp down surging prices, its Chair Jerome Powell recently indicated that the pace of increases could slow as soon as this month.
Its policy-setting committee will meet next week as well.
Among individual firms, activewear brand Lululemon plummeted more than 12 per cent after reporting a weaker outlook for the fourth quarter. AFP
