Connect with us

Published

on

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.

Subscribe to our daily Business Report newsletter!

Please provide a valid email address.

By clicking above you agree to the Terms of Use and Privacy Policy.

Never miss a story.

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.

Continue Reading

Sports

Zilisch breaks collarbone in scary Victory Lane fall

Published

on

By

Zilisch breaks collarbone in scary Victory Lane fall

WATKINS GLEN, N.Y. — NASCAR Xfinity Series points leader Connor Zilisch broke his collarbone after a hard fall in Victory Lane at Watkins Glen International.

After his series-leading sixth victory, Zilisch was climbing onto the roof of his No. 88 Chevrolet to celebrate. He slipped after apparently getting his left foot caught in the driver’s side window netting and tumbled awkwardly onto the asphalt.

Zilisch, 19, was taken on a backboard to the trackside medical center and then transported to a hospital for further evaluation. He posted on X about two hours later that he had a broken collarbone and that CT scans showed no head injury.

“Thank you everybody for reaching out today,” Zilisch posted. “I’m out of the hospital and getting better already. Thankful for all the medics for quick attention and grateful it wasn’t any worse.”

Zilisch will not be available for the Cup race Sunday at Watkins Glen. After racing in the Truck and Xfinity Series the past two days at the road course, he was scheduled to complete a tripleheader by making his fourth Cup start this season for Trackhouse Racing.

The scary incident capped an eventful day for Zilisch, who drives for Dale Earnhardt Jr.’s JR Motorsports team.

After starting from the pole position, Zilisch wrecked teammate Shane van Gisbergen’s car while battling for the lead on Lap 65. After being bumped from the lead to fifth on a restart, Zilisch retook first and led the final four laps.

“He did such a great job of getting back through the field and getting the lead,” crew chief Mardy Lindley told SiriusXM NASCAR Radio after the race. “Praying for Connor right now that he’s OK. I think he’s going to be fine.”

Zilisch missed a race earlier this season at Texas Motor Speedway after suffering a back injury during a crash at Talladega Superspeedway. He has 11 consecutive top-five finishes and five wins since his return.

Continue Reading

Sports

Rivera tears Achilles during Old-Timers’ game

Published

on

By

Rivera tears Achilles during Old-Timers' game

NEW YORK — Hall of Famer Mariano Rivera tore an Achilles tendon while going after a fly ball at the New York Yankees‘ Old-Timers’ Day game on Saturday and needs surgery.

Agent Fern Cuza said the 55-year-old closer, baseball’s career leader in saves, will have the operation within a week.

In his lone at-bat, Rivera singled off former teammate Andy Pettitte and easily ran to first base. During an at-bat by Willie Randolph, Rivera took a step and fell to the ground in shallow center field behind second base.

The Yankees restored the Old-Timers’ Day game for the first time since 2019.

“It was a fun day until we heard about Mariano. Mariano hurt his Achilles,” seven-time Cy Young Award winner Roger Clemens told WFAN broadcaster Suzyn Waldman. “I don’t know what was going on. We all thought it was a hamstring, but I think it’s a little worse than that. I think he’s at the hospital now. Unbelievable.”

Rivera was the second player to get hurt in the event since 2017. Eight years ago, former outfielder and current YES Network analyst Paul O’Neill strained a calf running to first base.

Rivera tore the ACL in his right knee in May 2012 while shagging fly balls in batting practice in Kansas City. He returned for his final season in 2013 and finished as baseball’s career saves leader with 652 and posted 42 postseason saves.

In 2019, the 13-time All-Star became the first player unanimously inducted into the Hall of Fame by getting all 425 votes in balloting conducted by the Baseball Writers’ Association of America. He helped the Yankees win five World Series titles and seven American League pennants.

Rivera was playing in the Old-Timers’ game for the second time. He hit an inside-the-park homer in 2019.

The event commemorated the 25th anniversary of the 2000 championship team, the last team to win three straight World Series titles. Clemens was a first-time attendee at the event, which had captain Derek Jeter give a short video message when he was introduced following Rivera.

Before the event, Rivera said he intended to speak with struggling reliever Devin Williams, who allowed three runs in the 10th inning Friday. He has allowed nine runs in his last five appearances and 28 earned runs this year, two more than 2022-24 combined.

“Can’t do nothing about it,” Rivera said Saturday morning. “Once it’s done, it’s done. Just learn from it, move on and be confident. You have to be confident in yourself. If you’re not confident in yourself, you’re playing the wrong sport.”

Continue Reading

Sports

Alonso equals Strawberry’s Mets career HR mark

Published

on

By

Alonso equals Strawberry's Mets career HR mark

MILWAUKEE — Pete Alonso hit his 252nd career home run Saturday night, tying the New York Mets record held by Darryl Strawberry for 37 years.

Alonso, 30, connected against Milwaukee Brewers starter Tobias Myers to lead off the second inning for his 26th homer this season, giving the Mets a 1-0 lead in a game they would go on to lose, 7-4. The 413-foot shot to left-center came on a 1-2 fastball at the top of the strike zone.

It was Alonso’s fourth homer in eight games, since he went deep Aug. 1 against San Francisco to end an 0-for-19 slump.

A homegrown star drafted by the Mets in 2016, Alonso broke into the big leagues with a bang in 2019, hitting 53 home runs to set a major league rookie record and establish a franchise high for a single season.

The five-time All-Star has reached 40 two other times and been one of the most consistent sluggers in baseball since his arrival. After a protracted negotiation, he returned to the Mets as a free agent in February on a two-year, $54 million contract that includes a $24 million player option for 2026, which Alonso will likely decline.

The only other active players who lead their current franchise in home runs are Manny Machado (Padres) and Mike Trout (Angels).

Giancarlo Stanton, now with the New York Yankees, holds the Miami mark with 267 for the Marlins.

Strawberry broke the previous Mets record with his 155th home run on May 3, 1988, passing Dave Kingman. Strawberry hit 252 in 1,109 games for New York during his first eight major league seasons from 1983 to 1990. He later played for the Dodgers, Giants and Yankees, finishing his 17-year career with 335 homers.

Alonso played his 963rd game Saturday night. The durable first baseman has appeared in 370 straight, a team record.

The Diamondbacks and Padres are the lone major league clubs that haven’t had a player hit more than 252 homers for them. Luis Gonzalez holds the Arizona record with 224, and Machado entered Saturday with 187 for San Diego.

Information from The Associated Press was used in this report.

Continue Reading

Trending