A trader works on the floor of the New York Stock Exchange (NYSE) in New York, the United States, on Feb. 24, 2023. (Photo by Michael Nagle/Xinhua)
The market weakness came as hotter-than-expected U.S. personal consumption expenditures data added to fears that the Federal Reserve will hold interest rates higher for longer in order to curb price pressures.
NEW YORK, Feb. 24 (Xinhua) -- U.S. stocks fell on Friday as a hotter-than-expected inflation report rattled Wall Street.
The Dow Jones Industrial Average dropped 336.99 points, or 1.02 percent, to 32,816.92. The S&P 500 sank 42.28 points, or 1.05 percent, to 3,970.04. The Nasdaq Composite Index shed 195.46 points, or 1.69 percent, to 11,394.94.
Nine of the 11 primary S&P 500 sectors ended in red, with real estate and technology down 1.81 percent and 1.77 percent, respectively, leading the laggards. Materials and financials rose 0.65 percent and 0.11 percent, respectively.
The market weakness came as hotter-than-expected U.S. personal consumption expenditures (PCE) data added to fears that the Federal Reserve will hold interest rates higher for longer in order to curb price pressures.
The U.S. Commerce Department reported Friday that the headline PCE price index rose 0.6 percent in January for a 5.4 percent year-on-year increase. The core PCE inflation, which excludes food and energy, rose 0.6 percent for a 4.7 percent year-on-year increase. The readings were higher than estimates.
Earlier this week, the Fed's most recent policy meeting minutes reaffirmed tough stance on inflation.
With inflation still "well above" the Fed's 2 percent goal and the labor market remaining "very tight," Fed members continued to anticipate that ongoing increases in the target range for the federal funds rate would be appropriate, stated the filing.
For the week, the Dow fell 3 percent, the S&P 500 decreased 2.7 percent, and the technology-heavy Nasdaq Composite slid 3.3 percent. ■
