Well, Wall Street has something to worry about again.
Futures tumbled Wednesday morning after the Labor Department reported consumer prices rose 2.1% over the past year. Inflation rose more than economists had predicted.
The Dow is set to open 300 points lower.
“Today’s [consumer price index] will certainly be the highlight of the day,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group.
Fear about inflation initially drove the market sell-off that began February 2, when the Labor Department reported employees’ paychecks grew faster than they had in nine years. The Dow fell by 1,00 -points twice last week.
Low inflation and rock-bottom interest rates had helped fuel soaring stock prices since 2009.
Inflation concerns investors because it could lead the Federal Reserve to hike interest rates more quickly than planned. That would slow down the economy make the cost of borrowing higher and would dent corporate profits. The Fed, which targets 2% inflation, has signaled it will raise rates three times this year for the second year in a row.
Stocks have rallied over the last three trading days following one of the most violate weeks since the 2008 recession. The Dow has added nearly 800 points in that time.