U.S. stock-index futures turned firmly lower on Wednesday, after the January consumer-price index came in stronger than expected. The Dow Jones Industrial Average futures sank 298 points, or 1.2%, to 24,330, while S&P 500 futures stumbled by 30 points, or 1.2%, to 2,629. Nasdaq-100 futures retreated 85 points, or 1.3%, to 6,474. Futures had been firmly higher ahead of the inflation reading. In the data, the consumer-price index rose 0.5%, slightly ahead of the 0.4% gain that had been expected. The core CPI rose 0.3%, while the 12-month gain in total CPI was unchanged at 2.1%. The CPI has taken on outsize importance over the past week, as it represents the first real read on inflation ever since a report on wage growth earlier this month. That report, which showed wages growing at their fastest pace in years, sparked a decline in the stock market that took the Dow and S&P 500 into correction territory. Investors have been concerned that rising inflation could push the Federal Reserve to be more aggressive in raising interest rates, a concern the CPI report could help assuage, as it is significantly below the 2% target the U.S. central bank has for inflation. Stocks have also been pressured by a rise in bond yields of late. Following the CPI report, the yield on the 10-year Treasury note was at 2.88%.
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