U.S. stock futures fell sharply on Friday after the Fed’s preferred measure of inflation showed a stronger-than-expected rise last month.
Dow Jones futures fell 366 points, or 1.6%. S&P 500 and Nasdaq 100 futures fell 1.2% and 1.7%, respectively.
The core personal consumption expenditures (PCE) price index excluding food and energy — the Fed’s preferred measure of inflation — rose 0.6 percent in January and was up 4.7 percent from a year earlier. Wall Street is expecting indices of 0.5% and 4.4%, respectively.
Meanwhile, when the volatile food and energy components are included, inflation rose by 0.6% and 5.4%, respectively.
The report heightened concerns that the Fed may have to keep interest rates higher for longer to calm inflationary pressures.
The major stock indexes are headed for a week of losses. The S&P 500 was down 1.64% through Thursday, which would be its worst week since Dec. 16. The Dow fell nearly 1.99% for the week and was on track for a fourth straight weekly loss. The Nasdaq fell 1.67%, on track for its second weekly loss in three weeks.
At the same time, after the news came out, the price Bitcoin fell more than 1% to $23,700 as DXY broke above 105.
Source: TradingView
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Bitcoin Magazine
