Stocks faced a downturn following the release of data indicating that inflation did not ease as much as anticipated last month.

The report revealed a 3.1% increase in consumer prices in January compared to a year earlier, marking a slight slowdown from December but surpassing the 2.9% rise forecasted by economists surveyed by The Wall Street Journal.

The news has left investors grappling with uncertainties regarding the Federal Reserve’s stance on interest rates. Federal Reserve Chair Jerome Powell has emphasized the need for additional evidence demonstrating a return to the central bank’s 2% inflation target before considering rate adjustments.

Earnings report

Amidst this economic backdrop, several major companies, including Coca-Cola, unveiled their earnings reports today. Investors are also anticipating results from Airbnb and other key players later in the afternoon.

In today’s trading session:

– U.S. stocks experienced broad declines, with all three major indexes—Dow industrials, S&P 500, and Nasdaq—registering losses of at least 1.6%. The Dow industrials saw a decline of around 650 points. Despite today’s setback, all three indexes remain in positive territory for the year.

– Across the S&P 500, every sector faced downward pressure.

– Following the inflation report, the yield on the 10-year Treasury note edged higher, reaching 4.312%.

– Bitcoin, after surpassing the $50,000 mark on Monday for the first time in over two years, hovered around $49,000 today.

In global markets:

– European stocks mirrored the downward trend seen in the U.S.

– Markets in China and Hong Kong remained closed for holidays.

– Japan’s Nikkei index reached a fresh 34-year high, contrasting with the downturn observed elsewhere.

As investors continue to monitor inflationary pressures and corporate earnings, today’s market activity reflects ongoing volatility and uncertainty in the economic landscape.