Here are the most important news items that investors need to start their trading day:
1. Breaking hearts
The Dow Jones Industrial Average had its biggest drop since March 2023 on Tuesday, shedding more than 500 points. At its worst point in the trading session, the Dow lost more than 700 points or nearly 2%. The S&P 500 and the Nasdaq Composite didn’t fare much better, dropping 1.37% and 1.8%, respectively. Inflation data came in above analysts’ estimates (more on that below), raising doubts that the Federal Reserve will be able to cut rates several times this year. That hope has driven the bull market so far this year. The 2-year Treasury yield also rose above 4.66%, while the 10-year yield topped 4.32%. Follow live market updates here.
2. Hotter than expected
Fruit is displayed in the produce section of a supermarket in Manhattan, New York, on January 27, 2024.
Charly Triballeau | AFP | Getty Images
Inflation is sticking around like a bad ex. Prices for goods and services climbed more than expected in January. The consumer price index rose 0.3% last month and was up 3.1% on a year-over-year basis. Economists had expected a climb of 0.2% for the month and an annual increase of 2.9%, according to a Dow Jones survey. Shelter prices rose 0.6% in January, accounting for more than two-thirds of the headline increase.
3. Ending things
In this photo illustration, the Paramount Global logo is displayed on a smartphone screen.
Rafael Henrique | SOPA Images | Lightrocket | Getty Images
Paramount Global is laying off hundreds of employees, CEO Bob Bakish said Tuesday in an internal memo to employees. The company — whose assets include CBS, Paramount Pictures, Pluto TV and Paramount+, as well as the cable networks Nickelodeon, BET and Comedy Central — is cutting about 800 jobs, or roughly 3% of its workforce, a person familiar with the matter told CNBC’s Alex Sherman. The news came a day after it announced that the CBS broadcast of Super Bowl 58 was the most-watched…
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