Stocks Tumble as Traders Focus on CPI Data
Stocks fell Monday as traders braced for key U.S. inflation reports due out later in the week and largely ignored a positive development in the tariff saga.
The Dow Jones Industrial Average dumped 200.52 points to 43,975.09
The S&P 500 index fell 16 points to 6,373.45.
The NASDAQ settled back 64.62 points to 21,385.40.
Cannabis stocks jumped after The Wall Street Journal reported that President Donald Trump was considering reclassifying marijuana to a lower danger level, citing people familiar with the mater.
Cronos Group, for example, rocketed 37 cents, or 16.1%, to $2.67, while Canopy Growth leaped 33 cents, or 26.4%, to $1.58.
Hershey, down $8.94. or 4.9%, led the S&P 500 to the downside on Monday. The candy giant closed Monday at $175.33.
Those moves come after the NASDAQ ended last week at fresh closing highs, and the S&P 500 closed on the threshold of another milestone. The Dow also finished the week on a high note.
Inflation readings this week will prove a key hurdle for a broad market index near record highs. The consumer price index, which is set to be released Tuesday, and the producer price index, due out Thursday, will be critical in shaping the outlook for the direction of interest rates, especially for the Federal Reserve’s September meeting.
Hotter inflation prints could hinder the market’s advance.
Prices for 10-year Treasury were up Monday, lowering yields to 4.28% from Friday’s 4.29%. Treasury prices and yields move in opposite directions.
Oil prices nosed up 21 cents to $64.09 U.S. a barrel.
Gold prices tumbled $88.80 to $3,409.80 U.S. an ounce.
