Consumer confidence dropped sharply in February, with the Conference Board's index falling to 98.3, driven by inflation concerns and labor market pessimism. Growth stocks declined while bonds rallied, with the Nasdaq Composite down over 1% and the 10-year Treasury yield dropping to 4.3%.
U.S. indexes bucked steady global equity markets overnight and Treasury yields fell to 2-1/2 month lows, trading off signs of softening U.S. growth and uncertainty over Trump administration policies while Germany's election result was buoying the euro.
U.S. consumer confidence plummeted in February, the biggest monthly decline in more than four years, a business research group said Tuesday.
NEW YORK — Most U.S. stocks fell Wednesday after a report showed inflation is unexpectedly worsening for Americans. The Standard & Poor’s 500 dropped 0.3%, though it had been on track for a much worse loss of 1.1% at the start of trading. The Dow Jones industrial average sank 0.5%, while the Nasdaq composite edged higher by less than 0.1%.
Inflation probably isn't going back to 2% without a recession, according to Barry Bannister, Stifel's top stock strategist.