U.S. stocks finished mixed in back-and-forth trading Tuesday afternoon as Wall Street weighed the implications of hotter-than-expected January inflation data on the path forward for interest rates.
The S&P 500 (^GSPC) finished just below the flatline, while the Dow Jones Industrial Average (^DJI) shed about 150 points, or 0.4%. The technology-heavy Nasdaq Composite (^IXIC) rose 0.6%. All three averages pared bigger losses from early in the session. Treasury yields rose, with the benchmark 10-year note climbing roughly 4 basis points to about 3.76%.
The January Consumer Price Index (CPI) released by the Bureau of Labor Statistics Tuesday morning showed prices rose 0.5% in the first month of the year, and 6.4% on an annual basis, more than economists expected.
Core CPI, which strips out the volatile food and energy components of the report, climbed 0.4% over the prior month and 5.6% year-over-year, also higher than forecast.
Bloomberg consensus estimates called for a 6.2% rise in CPI over the year and jump 0.5% month-over-month. New seasonal adjustments released by the BLS on Friday also switched December's initial reading of a 0.1% monthly drop in headline inflation to an increase of 0.1% in the year's final month. Forecasts called for a 5.5% annual increase and 0.4% monthly rise in the core CPI reading.@Daily_Discussion
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