Street Slumps
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
NEW YORK (AP) – Stocks slumped Friday after another reading on inflation deflated hopes the Federal Reserve will start moving toward an interest rate cut when it meets next week.
The declines Friday put the Dow Jones industrials and the Standard & Poor’s 500 indexes on track to give up more than 1 percent for the week.
The inflation reading was the second in as many days that upended expectations that the Fed might consider lowering rates as the economy gives off signs of slowing. The sentiment overshadowed a stronger-than-expected increase in industrial production.
“The market is dealing with the softer economic data that we’re seeing and trying to reconcile that with the somewhat stiff inflation data,” said Marie Schofield, fixed income strategist and portfolio manager at Columbia Management Group.
According to preliminary calculations, the Dow Jones industrial average fell 49.27, or 0.41 percent, to 12,110.41.
Broader stock indicators also slipped. The Standard & Poor’s 500 index fell 5.33, or 0.38 percent, to 1,386.95, and the Nasdaq composite index fell 6.04, or 0.25 percent, to 2,372.66.
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