Stocks tumbled yesterday, cutting leading equity indices to lows unseen since 1999 as the economic uncertainty plaguing equities for three weeks darkened on news of a surprising jump in inflation at consumer level.
The Nasdaq fell 49.42 points to 2,268.93, the lowest finish for the technology-laden measure since early March 1999. The Dow Jones industrial average sank 204.30 points to 10,526.58, the worst finish in nearly six weeks.
The benchmark Standard & Poor's 500 Index gave up 1.85 per cent to close at 1,255.27, the lowest finish since mid-October 1999.
Early yesterday, the US government said the overall consumer price index rose 0.6 per cent in January, the biggest gain since last March. The core CPI, excluding volatile food and energy prices, advanced 0.3 per cent last month. With the strength in prices, investors fretted anew about how aggressive the Federal Reserve would be in its campaign to halt a recession by cutting interest rates. "Investors are looking for reasons not to buy and the CPI numbers continue to raise concerns about how aggressive the Fed is going to be in cutting rates this year," said George Rodriguez, senior vice president, Guzman & Co., Jersey City, NJ.
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