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Investing.com — U.S. stocks were falling after data showed inflation picked up in January from the prior month.
At 9:48 ET (14:48 GMT), the Dow Jones Industrial Average was down 85 points or 0.3% while the S&P 500 was down 0.1% and the NASDAQ Composite was down 0.1%.
The consumer price index for last month rose 0.5%, after a 0.1% revised increase for December. The pace of the increase over the year ending in January did slow, however, rising 6.4%, slightly more than expectations. And the pace has slowed since mid-last year.
Core CPI, which excludes food and fuel prices, rose 0.4% for the month as expected and 5.6% for the year, again slightly ahead of expectations.
Analysts had hoped the numbers would give more definitive evidence that successive interest rate hikes last year to tame inflation were working. Growth stocks in particular have risen this year in the hope that the Fed could soon put a pause on its rate hikes.
But hopes are fading for a quick end. Many now see another quarter of a percentage point increase when the Fed meets in March and at least another one after that in May, with the benchmark rate rising to above 5% by mid-summer.
The National Federation of Independent Business small business optimism reading was 90.3 for January, lower than expected though an uptick from the prior reading.
Coca-Cola Co (NYSE:KO) shares ticked lower despite a strong full-year profit forecast from the beverage maker. Shares of Marriott International Inc (NASDAQ:MAR) rose 0.6% after the hotel giant forecast stronger than expected first quarter earnings on strong travel demand.
Oil fell. Crude Oil WTI Futures were down 1.9% to $78.66 a barrel, while Brent Oil Futures are down 1.6% to $85.22 a barrel. Gold Futures are down 0.1% to $1860.
