US stock markets witnessed sharp cuts following the release of inflation data for January, which came in higher than market expectations. The hotter-than-expected figures caused Treasury yields to spike, leading to concerns about the Federal Reserve’s ability to implement multiple rate cuts throughout the year, a crucial factor supporting the bullish outlook for equities.
The Dow Jones Industrial Average witnessed a decline of 538 points, equivalent to 1.4%. Similarly, the S&P 500 dropped by 1.51%, while the Nasdaq Composite fell by 1.90% in early trading.
The consumer price index (CPI) for January registered a 0.3% increase from December. On an annual basis, CPI rose by 3.1%.
Excluding food and energy prices, the core CPI accelerated 0.4% in January and was up 3.9% from a year ago, unchanged from December. The forecast had been for 0.3% and 3.7%, respectively.
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