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Investing.com – Stocks waffled on Thursday led by a drop in technology shares after a surge in consumer prices for February showed inflation is running the hottest in 40 years.
Consumer prices rose 7.9% in February over last year, according to the Labor Department. The Federal Reserve meets next week and is widely expected – mostly because the central bank has telegraphed it so – to begin a series of interest rate hikes to calm inflation.
The big wild card of course is Russia’s war against Ukraine, which broke out at the end of February and hasn’t been factored into the economic data so far. The war has driven up the costs of oil and other commodities.
Food prices jumped 1.0%, with the cost of food consumed at home soaring 1.4%, Reuters reported. Prices for fruit and vegetables increased by the most since March 2010, the report said, while prices for dairy and related products rose in nearly 11 years.
Gasoline prices in the U.S. are averaging a record $4.318 a gallon, up from $3.469 a month ago, AAA said.
Goldman Sachs (NYSE:GS) became the first Wall Street bank to quit operations in Russia, following a bunch of other American companies including McDonald’s Corporation (NYSE:MCD) and Coca-Cola Co (NYSE:KO).
Here are three things that could affect markets tomorrow:
1. Peloton rentals
Peloton Interactive Inc (NASDAQ:PTON) is testing new pricing plans in which customers pay a monthly fee that covers both its stationary exercise bike and a monthly subscription to workout courses. If a customer cancels, Peloton will take back the bike.
Stores in Texas and Florida will begin bundling $60-$100 monthly subscriptions on Friday. The move comes as the new CEO tries to execute a turnaround after Peloton came under pressure from an activist shareholder to sell the company.
2. Netflix plans
Netflix Inc (NASDAQ:NFLX) won’t start an ad-supported subscription tier despite plans by rival Disney+ to do so, the streaming giant’s CFO said at a conference.
Netflix is raising prices in the U.K. and Ireland for the second time in less than 18 months. The company is set to raise the price of its most popular subscription plan, which allows customers to watch on two screens at once, to £10.99 per month in the U.K. Netflix’s premium plan will rise to £15.99 per month while the entry-level plan will move to £6.99.
3. Rising prices
Consumer prices rose 7.9% year over year last month, and Americans are paying more for fuel, food and rent. Inflation is poised to accelerate this month after the effect of Russia’s war on Ukraine on oil and gasoline prices work their way into the data.
–Reuters and Investing.com staff contributed to this report
