Wall Street ends lower as inflation fears mount
By Johann M Cherian, Sukriti Gupta and Carolina Mandl
Tue January 7, 2025 4:34 PM
It was a shot straight down on all the indexes, particularly tech, as inflation concerns came back full force on the front burner again. Not only are Trump’s inflationary tariffs once again front and center after a very brief hiatus yesterday, but unexpected data showing increased job openings and accelerating services activity put a damper on the market’s consensus the economy was slowing down and we were in the final inning on the inflation fight.
Today’s sentiment has changed to a concern that inflation is likely a long-haul fight and will be with us for a while. That combined with rising Treasury yields, which the market has been recently ignoring, has caused a massive 3-digit selloff across the board. The forecast for the next rate cut is now June rather than March. The good news of solid growth has instead created the bad news of more inflation and more hawkish Fed action. Volume was enormous at 20.45 billion vs the 12.52 billion average.
DJ: 42,706.56 -25.57 NAS: 19,864.98
+243.30 S&P: 5,975.38
+32.91 1/6
DJ: 42,528.36 -178.20 NAS: 19,489.68
-375.30 S&P: 5,909.03
-66.35 1/7
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