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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.

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Sports

Ohio St. dominates Michigan to snap losing streak

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Ohio St. dominates Michigan to snap losing streak

ANN ARBOR, Mich. — Julian Sayin threw three touchdown passes, including a 35-yarder to Jeremiah Smith on a fourth down in the second quarter, and No. 1 Ohio State beat No. 15 Michigan 27-9 in a dominant performance on Saturday.

The defending national champion Buckeyes (12-0, 9-0 Big Ten, No. 1 CFP) likely earned a first-round bye in the College Football Playoff. They can keep their top seed with a win against No. 2 Indiana (12-0, 9-0, No. 2 CFP) in the conference championship game Saturday night in Indianapolis.

Ryan Day should sleep well, a year after losing The Game when his team was favored by about three touchdowns. The upset extended his losing streak in the series to four games and sparked speculation he might also lose his job.

The Wolverines (9-3, 7-2) started strong with two field goals and an interception on the first three possessions of the game, but couldn’t generate pressure when Ohio State wanted to pass.

After throwing an interception on his second snap, redshirt freshman Sayin took advantage of the time and space he had to throw.

Sayin was 6 of 6 for 68 yards with two touchdowns on third and fourth down in the first half, including a 4-yard throw to Brandon Inniss with 16 seconds left that made it 17-9 at the break. He finished 19 of 26 for 233 yards and threw for at least three touchdowns for the sixth time this season.

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Sports

Sources: Sumrall the favorite to land Florida job

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Sources: Sumrall the favorite to land Florida job

Tulane coach Jon Sumrall has emerged as the clear favorite to be the next head coach of the Florida Gators, sources told ESPN’s Pete Thamel.

Florida turned its attention away from Ole Miss coach Lane Kiffin earlier this week after getting the sense through irregular communication that he is interested in other options, likely a move to LSU or remaining with the Rebels, sources told ESPN on Friday.

Sumrall is expected to make a decision on his future by Sunday morning as he considers staying at Tulane or a move to Gainesville. He also received significant interest from Auburn, but the Tigers have since shifted their focus to other candidates, another indicator that Florida looms as the clear leader for Sumrall’s services, sources said.

Sumrall, a former SEC player at Kentucky, where he later served as an assistant coach and co-defensive coordinator, is 18-7 in two seasons at Tulane. He also won back-to-back Sun Belt titles as head coach at Troy in 2022 and 2023.

Sumrall, 43, garnered outside interest after his first season with Tulane, earning a contract extension after just one season at the helm.

Tulane (9-2) hosts Charlotte on Saturday night in its regular-season finale. The Green Wave can clinch a spot in the American Conference championship game against North Texas with a win over the 49ers.

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World

Hong Kong mourns those lost to fire as investigators search for remains

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Hong Kong mourns those lost to fire as investigators search for remains

Grief was not lonely today in Hong Kong. Three days after the worst fire in the history of modern Hong Kong, it feels as though it has barely sunk in.

The weekend at least lent them time to pay tribute, and gave them some space to reflect.

People came in droves to lay flowers, so many a queuing system was needed.

People queue with flowers near the site to mourn the victims of the deadly fire. Pic: AP
Image:
People queue with flowers near the site to mourn the victims of the deadly fire. Pic: AP

Official books of condolences were also set up in multiple parts of the city.

It was the first day large teams of investigators were able to enter the site. Dozens of them in hazmat suits were bused in, their work the grimmest of tasks.

Every so often you could see a flashlight peep through the window of an upper blackened window, a reminder that the fire services are still undertaking dangerous work.

But the reach of the authorities is ramping up here.

Firefighters walk through the burned buildings after the deadly fire. Pic: AP
Image:
Firefighters walk through the burned buildings after the deadly fire. Pic: AP

Yesterday a grass roots aid distribution centre was the vibrant heart of the response.

They received notice at 4am that they needed to pack up and move on. By 10.30am, the mountains of donations were gone, residents watched on, bewildered.

The task apparently will be handed over to professional NGOs.

“I think the government’s biggest concern is due to some past incidents,” one organiser tells us. “They may liken this to previous events. The essence looks similar.”

Pic: AP
Image:
Pic: AP

She’s careful with her words, but she’s clearly hinting at major pro-democracy protests that were crushed by authorities in 2019.

Any sort of mass gathering is now seen as a risk, the system is still very nervous.

And they might well be because people here are angry.

What, they ask, did the government know? What did it choose to ignore?

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How Hong Kong’s government failed to act on fire fears

Indeed, Sky News has learnt that residents raised their fears over fire safety connected to extensive renovations on Wang Fuk Court as early as September 2024.

They flagged the suspected flammability of green nets being used to cover the building.

An email response from the Labour Department was sent a few months later to Jason Poon, a civil engineer-turned-activist, who was working with residents. It insists that “the mesh’s flame retardant properties meet safety standards”.

But many clearly didn’t believe it. Posts spanning many months on a residents’ Facebook group continued to voice their fears.

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Hong Kong fire survivors supported by community

When a much smaller fire broke out in the city last month, one resident posted: “All the materials outside are flammable, I feel really worried.”

“I feel that same way” another replied. “The government has no sense of concern.”

For Poon, who dedicates much of his time to fighting lax safety standards in Hong Kong’s construction industry, the whole experience has been devastating.

“They knew all the maintenance was using corner-cutting materials, but they didn’t do anything,” he says.

“This is a man-made disaster.”

We put these allegations to Hong Kong’s Labour Department but they have not yet responded to our request for comment.

Grief may still be the prominent force here, but anger is not that far behind.

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