Stock market today: Most of Wall Street sinks after inflation worsens
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A sign outside the New York Stock Exchange marks the intersection of Wall and Broad Streets, Tuesday, Jan. 28, 2025, in New York. (AP Photo/Julia Demaree Nikhinson, File) NEW YORK (AP) — Most U.S. stocks fell Wednesday after a report showed inflation is unexpectedly worsening for Americans. The S&P 500 dropped 0.3%, though it had been on track for a much worse loss of 1.1% at the start of trading. The Dow Jones Industrial Average sank 225 points, or 0.5%, while the Nasdaq composite edged higher by less than 0.1%.
AI Summary
Main Idea: U.S. stocks mostly fell after a hotter-than-expected inflation report made investors worry the Federal Reserve may keep interest rates higher for longer.
Key Points:
- The S&P 500 fell 0.3%, and the Dow Jones Industrial Average dropped 225 points, while the Nasdaq composite ended slightly higher.
- January consumer inflation rose to 3%, above what economists expected and worse than December’s 2.9% reading.
- Higher inflation pushed Treasury yields up and raised doubts that the Federal Reserve will cut rates much, or at all, this year.
- Some companies rose after strong earnings, but many stocks tied to higher borrowing costs, oil prices, and consumer pressure fell.
Impact on the People
Negative Impact
Hotter inflation and higher Treasury yields can keep borrowing costs high for households and small businesses, while weaker stocks can hurt retirement accounts and consumer confidence.
Positive Impact
Stronger earnings from some companies may support jobs and patient access to services,.
How did each entity affect people?
Rate how each entity in this article affected the American people.
- Major:Dow Jones Industrial Averagebrand / product
Candidate Entities12 candidates · 5 weighted vote min · 70% decision
- Dow Jones Industrial Averagebrand / productMajorEvaluated
Major stock index highlighted in the market wrap.
Include 0 (0%)Ignore 0 (0%)5 to threshold - CVS HealthcompanyMajorAI selected
Named company whose results beat expectations and sent the stock sharply higher.
Include 0 (0%)Ignore 0 (0%)5 to threshold - Exxon MobilcompanyMajorAI selected
Major energy company whose shares fell with weaker oil prices.
Include 0 (0%)Ignore 0 (0%)5 to threshold - Federal Reservegovernment agency or bodyMajorAI selected
Its expected rate decisions are a major driver of the market move described in the article.
Include 0 (0%)Ignore 0 (0%)5 to threshold - Gilead SciencescompanyMajorAI selected
Named company whose stronger-than-expected profit drove a notable stock gain.
Include 0 (0%)Ignore 0 (0%)5 to threshold - Home DepotcompanyMajorAI selected
Large retailer whose stock declined and was cited among market drags.
Include 0 (0%)Ignore 0 (0%)5 to threshold - LennarcompanyMajorAI selected
Named homebuilder whose stock dropped amid rate-related pressure.
Include 0 (0%)Ignore 0 (0%)5 to threshold - LyftcompanyMajorAI selected
Named company whose shares fell after earnings and revenue results.
Include 0 (0%)Ignore 0 (0%)5 to threshold
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