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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

Danault’s last-minute goal saves Kings in wild G1

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Danault's last-minute goal saves Kings in wild G1

LOS ANGELES — Phillip Danault scored his second goal with 42 seconds to play, and the Los Angeles Kings blew a four-goal lead before rallying for a 6-5 victory over the Edmonton Oilers in the opener of the clubs’ fourth consecutive first-round playoff series Monday night.

The Kings led 5-3 in the final minutes before Zach Hyman and Connor McDavid tied it with an extra attacker. Los Angeles improbably responded, with Danault skating up the middle and chunking a fluttering shot home while a leaping Warren Foegele screened goalie Stuart Skinner.

Andrei Kuzmenko had a goal and two assists in his Stanley Cup playoff debut, and Adrian Kempe added another goal and two assists for the second-seeded Kings, who lost those last three series against Edmonton. Los Angeles became the fourth team in Stanley Cup playoffs history to win in regulation despite blowing a four-goal lead.

Quinton Byfield, Phillip Danault and Kevin Fiala also scored, and Darcy Kuemper made 20 saves in his first playoff start since raising the Cup with Colorado in 2022.

Los Angeles has home-ice advantage this spring for the first time in its tetralogy with Edmonton, and the Kings surged to a 4-0 lead late in the second period in the arena where they had the NHL’s best home record. That’s when the Oilers woke up and made it a memorable night: Leon Draisaitl, Mattias Janmark and Corey Perry scored before Hyman scored with 2:04 left and McDavid scored an exceptional tying goal with 1:28 remaining.

McDavid had a goal and three assists for the Oilers, who reached Game 7 of the Stanley Cup Final last season. Skinner stopped 24 shots.

Game 2 is Wednesday night in Los Angeles.

Until Edmonton’s late rally, Kuzmenko was the star. Los Angeles went 0 for 12 on the power play against Edmonton last spring, but the 29-year-old Russian — who has energized the Kings since arriving last month — scored during a man advantage just 2:49 in.

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Skinner finally makes playoff debut, gets assist

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Skinner finally makes playoff debut, gets assist

LOS ANGELES — Edmonton Oilers forward Jeff Skinner finally made his Stanley Cup playoff debut after 15 seasons and a league-record 1,078 regular-season games.

Skinner was in the lineup for Edmonton’s 6-5 loss in Game 1 of its first-round series against the Los Angeles Kings on Monday night, ending the longest wait for a postseason debut in NHL history.

Skinner, who turns 33 years old next month, has been an NHL regular since he was 18. He has racked up six 30-goal seasons and 699 total points while scoring 373 goals in a standout career.

But Skinner spent his first eight seasons of that career with the Carolina Hurricanes, at the time, a developing club that missed nine consecutive postseasons during the 2010s. From there, he spent the next six seasons with the woebegone Buffalo Sabres, whose current 14-season playoff drought is the league’s longest.

Skinner signed with Edmonton as a free agent last summer but struggled to nail down a consistent role in the Oilers’ lineup in the first half of the season. His game improved markedly in the second half, and he scored 16 goals this season while entering the playoffs as Edmonton’s third-line left wing.

Skinner’s teammates have been thrilled to end his drought this month. Connor McDavid presented Skinner with their player of the game award after the Oilers clinched their sixth straight playoff berth two weeks ago.

The veteran was active against the Kings, as his club mounted a furious rally only to lose in the final minute of regulation. Skinner had an assist and five hits across his 15 shifts. He finished the night with 11:12 time on the ice.

The Associated Press contributed to this report.

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Harvard University sues over $2.2bn funding freeze after rejecting demands from Donald Trump’s administration

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Harvard University sues over .2bn funding freeze after rejecting demands from Donald Trump's administration

Harvard University is suing Donald Trump’s administration after it rejected a list of demands from the White House and had $2.2bn (£1.6bn) of government funding frozen.

The Ivy League institution, in Cambridge, Massachusetts, is accused of ideological bias and allowing antisemitism during campus protests last year against Israel’s war in Gaza.

The Trump administration, which began a review of $9bn (£6.7bn) in federal grants for Harvard in March, had demanded the university screen international students for those “hostile to the American values” and the end of all diversity, equality and inclusion programmes.

FILE PHOTO: Demonstrators rally on Cambridge Common in a protest organized by the City of Cambridge calling on Harvard leadership to resist interference at the university by the federal government in Cambridge, Massachusetts, U.S. April 12, 2025. REUTERS/Nicholas Pfosi/File Photo
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Protesters earlier this month at Harvard called on the university to resist interference by the federal government. Pic: Reuters

Students, faculty and members of the Harvard University community rally against Donald Trump's funding  policies, Thursday, April 17, 2025, in Cambridge, Mass. (AP Photo)
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Students at a rally last week at Harvard against Donald Trump’s funding policies. Pic: AP

The university’s president Alan Garber has remained defiant and rejected those and other reforms, prompting the US President to question whether the university should lose its tax-exempt status.

Mr Trump accused the institution of pushing what he called “political, ideological, and terrorist inspired/supporting ‘Sickness?'” in a post on Truth Social.

Harvard has seen student-led protests in recent days calling on the institution to resist interference by the federal government.

Harvard’s lawsuit, filed in Boston, described the research funding freeze as “arbitrary and capricious” and violating its First Amendment rights.

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“The government has not – and cannot – identify any rational connection between antisemitism concerns and the medical, scientific, technological, and other research it has frozen that aims to save American lives, foster American success, preserve American security, and maintain America’s position as a global leader in innovation,” the court documents revealed.

A person relaxes on the Harvard University campus on Thursday, as the US Supreme Court announced its historic ruling Pic: AP
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Harvard University has rejected a series of demands from the White House. File pic: AP

On Monday, White House spokesperson Harrison Fields issued a defiant response to the lawsuit: “The gravy train of federal assistance to institutions like Harvard, which enrich their grossly overpaid bureaucrats with tax dollars from struggling American families is coming to an end.

“Taxpayer funds are a privilege, and Harvard fails to meet the basic conditions required to access that privilege.”

The Trump administration has also paused some funding for universities including Columbia, Princeton, Cornell, Northwestern and Brown over the campus protests.

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But protesters, including some Jewish groups, say their criticism of Israel’s military actions in Gaza is wrongly associated with antisemitism.

Mr Garber said the institution would continue to fight hate and fully comply with anti-discrimination laws.

A drone view shows an encampment at Harvard University where students protest in support of Palestinians in Cambridge, Massachusetts.
Pic: Reuters
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A small encampment in support of Palestinians at the Harvard campus in April 2024. Pic: Reuters

The American Council on Education, a non-profit organisation with more than 1,600 member colleges and universities, supported the legal action by Harvard.

“It has been clear for weeks that the administration’s actions violated due process and the rule of law. We applaud Harvard for taking this step.”

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