Stocks went back to falling on Wall Street Tuesday after a blip higher the day before, giving the S&P 500 its sixth loss in the last seven trading days. The benchmark index lost 0.6%. The market had started higher after the latest data on inflation came in better than economists had expected, but those gains faded quickly, the AP reports. Bond yields fell following the report, which showed that consumer prices rose just 0.3% last month, the smallest increase in seven months and a hopeful sign that inflation pressures may be cooling. The yield on the 10-year Treasury note fell to 1.29%. The S&P 500 fell 25.68 points to 4,443.05. The Dow Jones Industrial Average fell 292.06 points, or 0.8%, to 34,557.57, and the Nasdaq fell 67.82 points, or 0.5%, to 15,037.36.
Inflation has been a key concern for investors, who are trying to gauge how it will impact both the economy's recovery and the Federal Reserve's policy on maintaining low interest rates. The central bank has said higher costs for raw materials and consumer goods will likely remain temporary as the economy recovers, but analysts are concerned that the higher prices could stick around and dent companies' bottom lines while also crimping spending. There are still inflationary pressures even if they (consumer prices) came in lower than expected," says Kristina Hooper, chief global market strategist at Invesco. "It doesn’t mean that it's over."
The S&P 500's 11 sectors were all in the red, with banks and industrial and communication companies weighing down the index the most. S everal companies made big moves on a mix of news. Dietary supplement company Herbalife slumped 21.2% after cutting its profit and revenue forecasts. Wynn Resorts slid 11% for the biggest drop in the S&P 500 over concerns that its casinos in Macau could face stricter oversight as China tries to tighten regulations on a broad range of industries. Cable provider Comcast fell 6.2% after the company warned about a slowdown in new cable customers.
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