Stock market news today: Dow falls 349 points after hot inflation data

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US stocks fall after new inflation data boosts outlook the Fed will stay aggressive

US stocks dipped on Friday as investors brace for a more hawkish Federal Reserve after key inflation data for January came in hotter than expected.

Core Personal Consumption Expenditure data, the central bank's preferred inflation measure, increased 0.6% from a month earlier, higher than economists' estimates and the most since June. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average were all headed for a losing week after swinging between gains and losses over the past few trading sessions. The S&P 500 is on track for its worst week since mid-December.

Treasury yields jumped, with the two-year yield hitting 4.79%, its highest level since 2007. The 10-year yield rose eight basis points to 3.96% "We've got an extremely difficult economy to read," Former Treasury Secretary Larry Summers said."People may be reading a bit too much into the moment in terms of economic strength — relative to the way things could look very differently in a quarter or two."

 

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wild how wall st reacts the same way regardless of positive or negative outlook. shorting the economy

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