Futures for the Dow Jones Industrial dropped 0.6 percent, while futures for the S&P 500 declined by 1.2 percent. Nasdaq futures dropped more sharply, down 1.9 percent.
Associated Press
February 10, 2022 / 08:09 PM IST
Representative image
US markets are falling after a report showed inflation in the US is running hotter than previously thought.
Futures for the Dow Jones Industrial dropped 0.6 percent, while futures for the S&P 500 declined by 1.2 percent. Nasdaq futures dropped more sharply, down 1.9 percent.
Labor Department data showed that inflation soared over the past year at its highest rate in four decades, hammering America’s consumers, wiping out pay raises and reinforcing the Federal Reserve’s decision to begin raising borrowing rates across the economy. The consumer price index rose 7.5 percent year over year in January, while the expectation was for an increase of 7.3 percent.
Bond yields rose on the news. The yield on the 10-year Treasury rose to 1.99 percent. The yield has been at 2 percent since August 2019.
European markets moved lower after the US inflation numbers came out. Germany’s DAX slipped 0.1 percent and France’s CAC 40 edged down 0.5 percent after being up earlier.
The Walt Disney Co. gained more than 6.2 percent in off-hours trading after it reported a rebound in theme-park attendance last quarter and that it added more subscribers to its Disney+ streaming service than analysts expected.
Japan’s benchmark Nikkei 225 rose 0.4 percent to finish at 27,696.08. Australia’s S&P/ASX 200 gained 0.3 percent to 7,288.50. South Korea’s Kospi added 0.1 percent to 2,771.93. Hong Kong’s Hang Seng edged up 0.4 percent to 24,924.35, while the Shanghai Composite edged up 0.2 percent to 3,485.91.
Japan extended measures in Tokyo and some other places to curb outbreaks of the coronavirus for three weeks, until March 6, to try to bring the spread of the omicron variant under control. The restrictions, mostly requests to restaurants and bars to close early, had been scheduled to end on Sunday.
Also on market players’ minds is how Russia has massed over 100,000 troops near Ukraine’s border, prompting protests from the US, Europe and other allies. Western nations say they will impose their toughest-ever sanctions on Russian businesses and individuals if Moscow invades Ukraine.
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