Inflation Concerns Cause Stocks to Fall
Stocks fell as investors worried about rising prices and the threat of inflation, took profits following the three-day rally last week.
The Dow went down 75.37. Microsoft fell 9 cents, Boeing fell 2 cents, The S&P 500 fell 7.77, and the Nasdaq composite index went down 13.68.
According to the Seattle Times,
“Fresh worries about inflation arose after the Commerce Department’s latest reading on consumer income and spending. Personal income fell less than expected in January, but spending was flat and core consumer prices rose 0.3 percent, the fastest in more than three years.
Rising oil prices were also a concern, as a barrel of light crude settled at $51.75, up 26 cents, on the New York Mercantile Exchange. The confluence of news, along with nervousness about a raft of important economic data due later in the week, triggered the slide.”
“When you have the [Standard & Poor’s 500 index] up three days in a row like we had last week, you’ll definitely see some money coming off the table,” said John Hancock Funds equity trader Neil Massa. “It’s a broad sell-off here, not just one sector, and the money’s not being put to use anywhere. So I think folks are just waiting for later in the week.”
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