WALL Street stocks mostly fell on Wednesday (Feb 12) following US inflation data that further clouded the prospects for additional Federal Reserve interest rate cuts.
The consumer price index rose to 3.0 per cent in January from a year ago, above the 2.8 per cent projected by economists, raising questions about whether the Fed’s progress on bringing down prices was reversing.
Fed chair Jerome Powell told a congressional panel that the figures reinforced the central bank’s recent cautious approach to interest rate cuts.
The Dow Jones Industrial Average finished down 0.5 per cent at 44,368.56, while the S&P 500 lost 0.3 per cent at 6,051.97.
But the tech-rich Nasdaq Composite Index, which fell in the morning, finished with a modest gain at 19,649.95.
“Equities were a lot more resilient than I would have expected given the news we had this morning,” said Jack Ablin of Cresset Capital.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Besides inflation, markets have also been on edge over President Trump’s tariff plans.
Among individual companies, CVS Health shot up 15 per cent following better-than-expected earnings. The pharmacy chain company projected higher profits in 2025 compared with last year.
Gilead Sciences jumped 7.5 per cent after reporting results that beat expectations as it signalled it could launch its latest HIV prevention drug in the summer of 2025.
But Chevron fell 1.6 per cent after announcing it will cut 15 to 20 per cent of its workforce as part of a reorganisation to save money and to position the oil giant for the long-term. AFP
Share with us your feedback on BT’s products and services
