Inflation Fears Spark Market Sell-Off!

Stock Futures Tumble After Hot CPI Report

Stock futures took a dive this morning after January's Consumer Price Index (CPI) data came in hotter than expected, reigniting inflation concerns and sending interest rates soaring. 😱

Here's the breakdown:
* Dow Futures: Down 429 points (0.9%)
* S&P 500 Futures: Down 1.1%
* Nasdaq 100 Futures: Down 1.2%
January CPI:
* Rose 0.5% (vs. 0.3% estimate)
* Annual inflation rate at 3% (vs 2.9% estimate).
*Core CPI up. 0.4%
* The 10-year Treasury yield spiked above 4.6%! ⏫

The hotter-than-anticipated CPI report suggests that inflation may be stickier than previously hoped, potentially delaying any Federal Reserve interest rate cuts. The market reacted with a broad sell-off, hitting consumer stocks, banks, and even some bull market leaders. Palantir was down, for example.
Wells Fargo Investment Institute's Head of Global Equities and Real Assets Sameer Samana, said, "The hotter than expected CPI confirms investors' anxiety regarding too-hot inflation that will keep the Fed on the sidelines (as opposed to cutting rates)."

What's Next? 🗓️
All eyes will be on Federal Reserve Chair Jerome Powell's testimony before the House Committee on Financial Services today. Investors will be listening closely for any clues about the Fed's next move. His Tuesday comments to the Senate Banking Committee already signaled the Fed is in no rush to cut rates. The new concern is wether the next move will be to increase rates.

The former leader of the executive branch commented before the release of the data that rates should be lowered.