Dow plummets more than 500 points on heels of hot inflation data

Published

1 year ago

February 22, 2024

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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.

Politics

Patrick Spencer: Suspended Tory MP denies sexually assaulting two women at private members’ club

Published

1 hour ago

June 16, 2025

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Patrick Spencer: Suspended Tory MP denies sexually assaulting two women at private members' club

An MP has denied two counts of sexual assault allegedly carried out at a private members’ club in central London.

Patrick Spencer, who represents Central Suffolk and North Ipswich, is accused of cupping the breasts of two women over their clothes at the Groucho Club in August 2023.

The 37-year-old confirmed his full name and date of birth before pleading not guilty to the offences at Westminster Magistrates’ Court.

Politics Hub: Starmer attends day two of G7 summit

He is due to appear at Southwark Crown Court on 14 July.

Spencer was suspended from the Conservative Party and had the whip withdrawn after the charges were brought.

The politician was first elected to parliament last year with a majority of 4,290.

Lawyers acting for the MP have previously said he “categorically denies the charges” and would defend against the allegations “robustly in court”.

The Groucho Club, on Dean Street, opened in 1985 and became a renowned meeting place for A-list celebrities and others, including actors, comedians and media executives.

The club was named after the comedian and actor Groucho Marx, who reportedly once said he would refuse to join any club that would have him as a member.

World

Israel had ‘no choice’ but to attack Iran because it was ‘rushing’ to nuclear bomb, president Isaac Herzog claims

Published

1 hour ago

June 16, 2025

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Israel had 'no choice' but to attack Iran because it was 'rushing' to nuclear bomb, president Isaac Herzog claims

Israel had “no other choice” but to attack Iran because it was proceeding “dramatically” towards a nuclear bomb, Israeli President Isaac Herzog has claimed.

Speaking to Sky News’ Yalda Hakim, he said Iran was “rushing” to the bomb “under disguise”.

He also suggested the Israeli war cabinet was discussing Iran’s Supreme Leader, Ayatollah Ali Khamenei, amid reports that President Donald Trump vetoed a plan to kill him.

It comes as Israel and Iran continue to fire missiles at each other after Israel launched an unprecedented strike on Iran’s nuclear and military capabilities.

Tehran has long denied that its nuclear program has been attempting to obtain a nuclear weapon.

Mr Herzog was asked why Israel attacked Iran when it did.

“When you take such decisions of historic magnitude and proportions, you have to analyse all facets and all facts,” he replied.

“The truth of the matter is there was no other choice.”

He claimed Iran was proceeding “dramatically” towards the bomb, both in terms of the enrichment of uranium and, “clandestinely”, the armament part of the process.

“I’ve always been very crystal clear with regards to a nuclear capability of our enemies – it has to be removed at once.”

Mr Herzog added: “We have to remove the Iranian nuclear program because we see the negotiating process as being futile because they are lying whilst talking to us.

“They are lying whilst talking to the United States and other allies.”

He was questioned whether the strikes on Iran’s nuclear infrastructure could provoke a response that causes a mass casualty event in Israel.

“(We are) very much aware of the risks of this war,” he replied. “Every night there are missile attacks, heavy missile attacks on Israel.

“We have our air defence systems, which are excellent.

“Unfortunately, we have casualties. Brothers and sisters of ours from toddlers all the way up to the age of 94.”

He continued: “No, we don’t accept it at all… That’s why we are fighting also, to eliminate their capability of firing at us.”

He also suggested the Israeli war cabinet was discussing Iran’s Supreme Leader Ayatollah Ali Khamenei, after reports Mr Trump vetoed an Israeli plan to kill him.

“Let’s just remember that the Supreme Leader of Iran has for years called for the annihilation of Israel.”

Environment

The new Hyundai IONIQ 6 has some seriously impressive range, more than the Kia EV4

Published

2 hours ago

June 16, 2025

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The new Hyundai IONIQ 6 has some seriously impressive range, more than the Kia EV4

Hyundai’s electric fastback is due for some major upgrades that could finally make it the Tesla Model 3 challenger it was designed to be. The new Hyundai IONIQ 6 is better than ever, featuring a stylish new look both inside and out, an NACS port for charging at Tesla Superchargers, and even more driving range than expected.

The new Hyundai IONIQ 6 is a long-range, stylish EV

It’s been just about three years since Hyundai unveiled the IONIQ 6 for the first time at the 2022 Busan International Motor Show.

Hyundai’s “electrified streamliner” arrived as what was expected to be a genuine rival to the Tesla Model 3, boasting over 350 miles of driving range, fast charging in under 20 minutes, and an affordable price tag.

Despite this, the electric sedan has failed to live up to its hype. In the US, IONIQ 6 sales fell 6% last year, with only 12,264 units sold. According to Cox Automotive, Tesla sold 189,903 Model 3s in the US last year, a decrease from 2023, partly due to the launch of the refreshed model.

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With the upgraded IONIQ due out later this year, Hyundai’s EV might finally match the Model 3 as another long-range, fast-charging, affordable electric sedan.

The new Hyundai IONIQ 6 has just become Korea’s longest-range electric sedan. It was officially certified by the Ministry of Environment with a range of up to 568 km (353 miles), surpassing the Kia EV4 at 549 km (341 miles).

On the WLTP scale, that could translate to nearly 700 km (430 miles) range. The current IONIQ 6 is rated with a WLTP range of up to 614 km (382 miles).

For those in the US, the 2025 Hyundai IONIQ 6 already provides an EPA-estimated range of up to 342 miles. The new model is expected to achieve a range of over 350 miles.

The new IONIQ 6 features an upgraded 84 kWh battery, similar to the 2025 IONIQ 5, providing increased driving range. Hyundai’s new IONIQ 5 is now rated with an EPA-estimated driving range of 318 miles, up from 303 miles in the 2024 model.

Like the IONIQ 5 refresh, the new IONIQ 6 is expected to arrive with a built-in NACS port, allowing access to Tesla Superchargers.

Hyundai unveiled the new IONIQ 6 design at the Seoul Mobility Show in April, saying it “enhanced every line and detail to make the IONIQ 6 simpler and more progressive.” And last week, Hyundai teased a sporty “N” line mode coming soon. We got a sneak peek of it in public a few days later after it was spotted driving in Korea. You can tell, it’s already shaping up to be a significant upgrade.

As for prices and final specs, we’ll have to wait until closer to launch later this year. Check back soon for more info. We’ll keep you updated with the latest.

Will Hyundai’s electric sedan finally compete with the Model 3? Let us know your thoughts in the comments below.

Source: Yucca Post Korea

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