NEW YORK, Jan 11 — Wall Street stocks were little changed early today after data showed US consumer prices rose more than expected in December.
The Department of Labour’s consumer price index, a key measure of inflation, was up 3.4 per cent from a year ago and higher than November’s figure.
From November to December, CPI rose 0.3 per cent, compared with expectations for a 0.2 per cent increase.
The CPI data had been keenly anticipated for its implications on potential Federal Reserve interest rate cuts.
About 25 minutes into trading, the Dow Jones Industrial Average was down 0.2 per cent at 37,633.04.
The broad-based S&P 500 slipped 0.1 per cent to 4,778.54, while the tech-rich Nasdaq Composite Index was up a hair at 14,971.93.
Many investors expect the Fed to begin lowering rates in March, but others expect the move to happen later in 2024.
CFRA’s San Stovall said he was surprised at the market’s muted response to the data.
“It’s almost like ‘Damn the torpedoes, full speed ahead.’ The market wants to establish a new all time high,” said Stovall.
There may be “individual monthly bumps in the inflation readings, but the overall trend will continue to be downward,” Stovall added. — AFP
