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

Published

2 months 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.

UK

More human remains found in two locations as part of Salford torso inquiry

Published

4 hours ago

April 28, 2024

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More human remains found in two locations as part of Salford torso inquiry

More human remains have been found in two locations as part of an investigation that started when a man’s torso was discovered in Salford.

Police believe the torso belongs to a man in his 60s and have informed his family about his death, but have not yet identified him publicly.

In a news conference today, officers revealed the victim is believed to have known two men who are currently in custody. They are believed to have lived together.

Detective Superintendent Lewis Hughes said they were looking at four crime scenes in Salford and the Greater Manchester area.

The human remains discovered over the last two days were found at Salford’s Blackleach Reservoir and Linnyshaw Colliery Wood.

Officers had already identified the two scenes before the remains were found and were “on route to the Colliery Wood” when a member of the public called to say they had found a package, said Det Supt Hughes.

Police officers found the other remains at the reservoir today while searching the area.

“We are very confident it is the same victim,” Det Supt Hughes added.

The victim is believed to have died in late March.

Police are searching a warehouse in Bury where “items were stored after this incident without the knowledge of occupants of that warehouse,” said Det Supt Hughes.

They’re also searching a house in Winton where the victim “was believed to have lived with the two men in custody”.

The first remains – consisting of the bottom of the back, buttocks and thigh – were found in clear plastic by a passer-by at Kersal Dale Wetlands in Salford, Greater Manchester, on 4 April.

Two men, aged 42 and 68, from Salford, who are believed to be known to each other, were arrested on suspicion of murder on 25 April, GMP said, after officers trawled through hundreds of hours of CCTV footage.

The 42-year-old was arrested after officers stormed a bus in Eccles Old Road around midday, the force said.

The other man was later arrested at an address in Worsley Road.

A 20-year-old man previously arrested on suspicion of murder was later released on bail pending further inquiries.

“It is too soon to rule out [looking for other suspects] but we’re confident at this time that we have the right two suspects in custody,” said Det Supt Hughes.

Detectives are still appealing the public for any information related to the crime and want to hear from witnesses, including dog walkers, who were in the area between 6am and 6pm on the day a passer-by made the original grim discovery.

More than 100 officers searched the Kersal Dale area for 12 days looking for evidence, working with an underwater search team and dogs before lifting the crime scene on 17 April.

UK

Small boat migrant arrivals by late April at highest level ever

Published

5 hours ago

April 28, 2024

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Small boat migrant arrivals by late April at highest level ever

The number of migrants that have crossed the Channel in small boats during the first four months of the year is at its highest ever level.

Some 7,167 people have arrived on UK shores after travelling by small boat from the continent between 1 January to 27 April, with 902 entering just this past week

This compares to 5,745 for the same period last year. The previous record was 6,691 in 2022.

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The figures come after Rishi Sunak has staked much of his political future on getting the number of migrant boat crossings down.

On Sky’s Sunday Morning With Trevor Phillips programme he said migrants travelling to Ireland after arriving in the UK on small boats was a sign the Rwanda scheme was already working as a deterrent.

“People are worried about coming here and that demonstrates exactly what I’m saying,” he told Sky News.

“If people come to our country illegally, but know that they won’t be able to stay there, they are much less likely to come, and that’s why the Rwanda scheme is so important.”

However, the news that migrants are crossing from Northern Ireland into the Republic has sparked an outcry in the country, and prompted the government in Dublin to announce they are planning emergency legislation to send asylum seekers back to Britain.

More than 80% of recent arrivals in the republic came via the land border with Northern Ireland, Irish justice minister Helen McEntee told a parliamentary committee last week.

Stopping the boats was one of the government’s five priorities set out by the prime minister after he took office in 2023.

The latest figures have been seized upon by Labour, with shadow immigration minister Stephen Kinnock saying: “This is the blunt reality behind all of Rishi Sunak’s empty boasts: more people have arrived by small boats so far this year than ever before and more people are having to be rescued.

“What will it take for Rishi Sunak to wake up and realise that his plan is not working?

“We desperately need a Labour government in place to get a grip of this issue.

“Our plan would strengthen Britain’s border security, crush the smuggling gangs, clear the asylum backlog, end hotel use, and set up a new returns and enforcement unit so those with no right to be in the UK are swiftly returned.”

Earlier this week, the prime minister said the government would “begin the process of removing those identified for the first flight” to Rwanda.

Mr Sunak said that they had increased detention spaces to 2,200 and had 200 caseworkers “ready and waiting” to process asylum claims.

He added that 25 courtrooms and 150 judges had been provided to deal with any legal cases quickly.

Technology

How working for Big Tech lost ‘dream job’ status

Published

5 hours ago

April 28, 2024

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Despite blockbuster earnings from giants such as Alphabet and Microsoft, layoffs continue to ripple through the tech industry.

Layoffs.fyi, a platform monitoring job cuts in the tech sector, recorded more than 263,000 job losses in 2023 alone. As of April, there have been more than 75,000 job losses in the industry so far in 2024.

“So instead of rewarding the growth that we saw [tech companies] all pursue years ago, they’re now rewarding profit,” said Jeff Shulman, professor at the University of Washington’s Foster School of Business. “And so the layoffs have continued. People have become used to them. Regrettably and sadly, it seems that the layoffs are going to be the new normal.”

Even though mass tech layoffs continue, the labor market still seems strong. The U.S. economy added 303,000 jobs in March, well above the Dow Jones estimate for a rise of 200,000, with the unemployment rate edged lower to 3.8%.

According to Handshake, a popular free job posting site for college students and graduates, the tech layoffs have prompted new workers to seek other opportunities. The share of job applications from tech majors submitted to internet and software companies dropped by more than 30% between November 2021 and September 2023.

“Part of the reason why this is happening is because stability is such a major factor in students’ decisions around what types of jobs they apply to and what types of jobs they accept,” said Christine Cruzverga, chief education strategy officer at Handshake. “They’re looking at the headlines in the news and they’re paying attention to all of the layoffs that are happening in Big Tech, and that makes them feel unstable.”

Mass layoffs have eroded the shine of the tech industry, which is why workers are questioning whether getting a job in the tech industry should still be regarded as a “dream job.”

“For the people who are chasing … a tech dream job, I think keep your options open and be realistic,” said Eric Tolotti, senior partner engineer at Snowflake, who got laid off from Microsoft in 2023. “Don’t just focus on one company and feel like you have to get into that one company because it’s the dream.”

Watch the video to learn about tech workers’ sentiments, considerations for aspiring Big Tech employees, and more.