The Dow Jones Industrial Average plunged more than 500 points on Tuesday after hot inflation data for January dimmed hopes that the Federal Reserve would begin cutting interest rates next month.
The Dow, which tumbled as 750 points, slid 1.4% — its worst day since since March 2023. The S&P 500 slipped 1.4%, while the tech-heavy Nasdaq Composite fell 1.8%.
Both the Dow and the S&P 500 had hit record highs this year before plunging following the release of the Consumer Price Index, which rose a stiffer-than-expected 3.1% on an annual basis.
The figure — which tracks changes in the costs of everyday goods and services — remains far off from the Fed’s 2% target.
Core CPI a number that excludes volatile food and energy prices increased 0.4% in January, to 3.9%.
The figure, a closely-watched gauge among policymakers for long-term trends, was also higher than what economists anticipated.
“Inflation staying sticky is everyone’s biggest fear and this report is showing its not going down,” Chris Zaccarelli, the chief investment officer of Independent Advisor Alliance, said. “The knee- jerk reaction is for stocks and bonds to sell off. That makes sense. Then we’ll wait for the next report and if that’s lower this will turn out to be just a blip.”
The increase could delay the prospect of three interest rate cuts the Fed anticipates to make in 2024.
Wall Street had initially expected that the first time rates were brought down from their current 22-year high would be in March.
Fed Chair Jerome Powell said after the latest policy meeting that “it’s not likely that this committee will reach that level of confidence in time for the March meeting.”
The CME FedWatch Tool shows that a May rate is also largely off the table.
The probability of a May rate cut slumped from 52.2% to 36.6% on Monday while the chance of a slash in June now stands at 78.6%, down from 92.2%.
Atlanta Fed President Raphael Bostic, who is voting on the Federal Open Market Committees policy decisions this year, told CNN that he’s anticipating the first of three cuts to take place in the fourth quarter — weeks after the mid-year slowdown Wall Street is now expecting.
By the end of the year, inflation will be near “the lower twos,” he said.
This isnt a TikTok video or something like that where you get trends happening so fast. It takes a while for the decisions of individual decisions and millions of people to come together and to start to create trends, he told CNN.
At the same time, theres a significant risk if the Fed leaves interest rates where they currently are for too long, Bostic warned.
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He also noted how difficult it’s been to tamp down inflation as the job market has remained surprisingly strong.
Januarys monthly jobs report added a blockbuster 353,000 new jobs to the economy — nearly double analysts’ expectations.
Although inflation appears to be slowing, the economy remains Americans overall top concern, cited by 22% of poll respondents, as they have struggled with inflation and other aftershocks of the COVID-19 pandemic, according to a Reuters/Ipsos poll released last month.
Since taking office, Biden has made a pitch for lower supermarket prices, pushed drug makers to lower insulin costs, hotel chains to reduce fees and tried to diversify the meat-packing industry after beef prices skyrocketed in the aftermath of the pandemic.
Alfredo Ortiz, president and CEO of Job Creators Network, told The Post in a statement that “inflation remains historically high and is nothing to cheer about.”
“Talk to any American going to the grocery store, hardware store or pharmacy, and they’ll tell you prices continue to rise at a painful rate.”
A December 2023 report on shrinkflation — when businesses cut product sizes but keep prices the same — found that household paper products were 34.9% more expensive per unit than they were in January 2019, with about 10.3% of the increase due to producers shrinking the sizes of rolls and packages.
Researchers also found that the price of snacks like Oreos and Doritos had gone up 26.4% over the same period, with shrinking portions accounting for 9.8% percent of the increase.
BOULDER, Colo. — Deion Sanders didn’t get a chance to fully enjoy the moment as his son, Shedeur, and his just-like-a-son, Travis Hunter, had their jerseys retired Saturday before the spring game.
The Colorado coach had too many other obligations — checking out his new QBs, watching special teams and making sure the product was entertaining for a national television audience tuning in.
He was appreciative of the moment, though, even if the jersey retirement has rankled some former Colorado players and fans.
“I looked in both of their eyes — I know [Shedeur and Travis] were pleased, they were thankful, and they were proud,” Deion Sanders said. “That means a lot to me.
“The time frame, nobody’s going to be happy with. Somebody’s always going have something to say. But the way we are right now, we are a now generation. … those guys deserve what they deserve right now. So I’m proud of them.”
It was one of the last times that Hunter and Shedeur Sanders will team up on the turf at Folsom Field. Standing at midfield, they watched their retired jersey numbers — No. 2 for Sanders, No. 12 for Hunter — unveiled on the east face of the stadium.
This kicked off a busy week for Hunter, the Heisman Trophy winner, and Sanders, the Johnny Unitas Award winner as college football’s top QB. Both are expected to be high draft picks when the NFL draft starts on Thursday.
Once the retired ceremony concluded, the Buffaloes got down to the business of football.
Namely, finding a successor for Shedeur Sanders.
It figures to be a two-QB race between Kaidon Salter, a transfer from Liberty, and Julian “JuJu” Lewis, the five-star recruit who arrived on campus last fall to get an early start.
Lewis was the first to take the field and there were early jitters. He mixed the pass with the run, which will be a familiar sight as Colorado emphasizes the ground game this season now that the younger Sanders is gone. The Buffaloes brought in Hall of Famer Marshall Faulk as the running backs coach to provide a spark.
“He’s still a young man,” Deion Sanders said of Lewis. “We don’t care about the age and the stage, though.”
Salter showed a veteran’s poise when it was his turn. The dual-threat QB threw for 56 TDs at Liberty and ran for 21 scores.
“I fell in love with the offense,” Salter said of why he chose Colorado. “We have a fully loaded staff here that knows what it takes to get to the next level.”
Shedeur Sanders sauntered along the sideline, taking in the action of his heirs apparent, Lewis and Salter. Looking on as well was Hunter.
Sanders and Hunter became the fifth and sixth players in Colorado’s 135-year history to have their jerseys retired.
At halftime, the Buffaloes announced the late coach Bill McCartney would be honored next season with a statue. McCartney, who led the program to its only football national championship in 1990, died in January at 84.
Deion Sanders said he only wishes the tribute came earlier.
“Why are we waiting? Wouldn’t (McCartney) have wanted him to see (it), to be involved in it, to feel it, to feel the love, the respect, the appreciation? Why’d we wait?” asked Sanders, who plans to honor McCartney next fall by donning a similar hat and jacket as the Hall of Fame coach used to wear. “Everything we get is right now. We want something, we order it off Amazon — right now. We’re not a … waiting generation no more. That’s over. That’s a wrap on that. Everybody in here is impatient. You download stuff right now, putting it out as I speak. Let’s stop.
“I’m sad because I wanted him to see that. He can’t see that.”
Bring on Syracuse?
The attendance was announced at 20,430 fans, which was down from the previous two spring games. Sanders thinks the NCAA nixing a plan to play Syracuse hurt ticket sales. Still, he wants to see more seats filled.
“We do have a tremendous fan base, but we need a little more support when it comes to whatever we do inside the stadium,” Sanders said. “We should be packing it like it’s a game.”
Walk-on honored
Walk-on safety Ben Finneseth was awarded a scholarship by Sanders.
“As soon as I put my head in his shoulder, I said, ‘Thank you for believing in me.’ Because he’s believed in me since Day 1,” Finneseth said. “I can’t thank everyone enough for giving me the opportunity.”
Information from The Associated Press was used in this report.
Missouri State senior football player Todric McGee died early Saturday from what police believe was a “possible accidental self-inflicted gunshot wound.”
A spokesperson for the Springfield (Missouri) Police Department said they found McGee at his residence while performing a wellness check Friday morning. He was transported to a hospital, where he died from his injuries.
He was 21.
“Our football family is in shock and in mourning at the loss of Todric,” Bears head football coach Ryan Beard said in a statement. “We ask everyone to please respect the privacy of his family and our MoState football team at this time as we begin the healing process. Join us in praying for Todric and the people who loved him.”
McGee, a fifth-year senior, started each of the past two seasons for the Bears. He earned All-Missouri Valley Football Conference honors in 2023.
“This tragedy has shaken our football program to the core, and we want them to know we are here to support them in every way possible at this extremely difficult time,” athletic director Patrick Ransdell said in the school’s statement.
The investigation into McGee’s death is ongoing, police said.
Michigan quarterback Bryce Underwood showed glimpses of the growing pains he will experience as a freshman and flashes of the promise that made him the nation’s top-rated high school football recruit in the Wolverines’ spring game Saturday.
Underwood was 12 of 26 for 187 yards with a scrimmage-ending, 88-yard pass to tight end Jalen Hoffman on a reverse flea-flicker in a 17-0 win for the Blue over the Maize.
He also recovered his fumble, had a pair of delay-of-game penalties, several errant throws – high and wide – and some dropped. Underwood lost 12 yards on two sacks and gained 17 yards on three runs.
“He did well,” coach Sherrone Moore said. “Made some really, good throws and had some things we need to clean up and get better at.”
As the Wolverines wrapped up spring football in front of about 40,000 fans at the Big House, all eyes were on Underwood and he has become comfortable with that.
“It’s just the pressure that came with my arm,” Underwood told The Detroit News earlier this spring. “I can’t stop that.”
Underwood was sacked on his first snap and his first completion went for a loss. He did throw some darts, usually in the flat, and was quick enough to escape collapsed pockets to pick up yardage with his feet.
Underwood is expected to compete with sophomore Jadyn Davis and Fresno State transfer Mikey Keene for playing time ahead of the season-opening game on Aug. 30 at home against Fresno State.
“It’s a battle,” Moore said. “It’s going to go all the way to fall camp.”
Underwood is motivated to start and kick off a legacy-building career with lofty goals.
“A couple of Heismans and at least one natty,” Underwood said last month in an interview on the Rich Eisen Show.
Underwood knows there will be people doubting he can live up to the hype.
‘He’s just a freshman. He won’t be good enough,'” Underwood said. “I might keep that chip my whole three years.”
He attended at Belleville High School, which is about 15 miles east of Ann Arbor, and flipped his commitment to Michigan after telling LSU coaches last year he intended to play there.
Tom Brady, a former Wolverine and seven-time Super Bowl winner, talked with Underwood during the school’s recruitment via FaceTime and Oracle founder Larry Ellison, one of the world’s richest people, also connected with him.
Jay Underwood told the Wall Street Journal that his son is expected to make more than $15 million at Michigan, but that doesn’t guarantee he will take the first snap next fall.
“He wants to earn everything,” Moore has said. “He doesn’t want to be given anything.”
Hoffman said Underwood has simply blended in with his teammates.
“He’s really humble, like not a big head, ego, nothing like that,” he said. “Comes into work and every day, he wants to get better every day. He’s not riding off his success in high school. He’s really trying to be one of those top players in college football.”
Underwood participated in practices with the team before it beat Alabama in a bowl game, enrolled in classes in January and gained a lot experience in 14 private practices before a public scrimmage.
“Football is football,” he told MLive.com. “School is a little bit more overwhelming now.”