Wholesale prices are heating up more than expected—0.5% jump in January. Markets didn’t like it, with the Dow dropping 728 points. Fed might stay cautious on rate cuts.

Ohtis

"The Producer Price Index rose 0.5% last month, a pickup from December’s 0.4% rate, according to the latest data from the Bureau of Labor Statistics. The annual rate of inflation nudged down to 2.9% from 3%.

Economists were expecting wholesale inflation to increase by 0.3%, which would have resulted in a 2.6% annual rate.

US stocks moved sharply lower Friday morning, with investors fearing the hotter-than-expected inflation report could lead the Federal Reserve to keep its rate-cutting cycle on pause. The Dow fell 728 points, or 1.47%. The S&P 500 sank 0.8%, and the tech-heavy Nasdaq slid 0.92%."

econ

"The Producer Price Index rose 0.5% last month, a pickup from December’s 0.4% rate, according to the latest data from the Bureau of Labor Statistics. The annual rate of inflation nudged down to 2.9% from 3%.

Economists were expecting wholesale inflation to increase by 0.3%, which would have resulted in a 2.6% annual rate.

US stocks moved sharply lower Friday morning, with investors fearing the hotter-than-expected inflation report could lead the Federal Reserve to keep its rate-cutting cycle on pause. The Dow fell 728 points, or 1.47%. The S&P 500 sank 0.8%, and the tech-heavy Nasdaq slid 0.92%."