Provided by
Dow Jones
By Karen Langley and Joe Wallace
U.S. stocks extended their losses Wednesday, with the Dow Jones Industrial Average and S&P 500 posting their steepest three-day declines in nearly seven months, after a sharp rise in consumer prices heightened concerns about inflation.
The jump in prices was steeper than expected and exacerbated fears that inflation could prompt the Federal Reserve to accelerate its timeline for scaling back its easy-money policies. Near-zero rates have buoyed demand for stocks, which have hit dozens of records since the coronavirus pandemic sent them tumbling early last year.
"Not only is just inflation and unexpected inflation a bad story for any type of real returns in your portfolio, it's also increasing the uncertainty around what the Fed's next moves are going to be over the next couple of months," said Matt Forester, chief investment officer of Lockwood Advisors at BNY Mellon Pershing.