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© Reuters. FILE PHOTO: A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 7, 2022. REUTERS/Brendan McDermid
By Caroline Valetkevitch
NEW YORK (Reuters) – U.S. stocks were solidly lower on Thursday in a broad decline as investors grew cautious ahead of data on Friday that is expected to show that consumer prices remained high in May.
All 11 of the sectors were in negative territory by afternoon, with the communication services sector down the most.
Adding to nervousness, the benchmark climbed to as much as 3.073%, its highest level since May 11.
Also, prices held near $123 a barrel, helping to keep investors on edge before Friday’s U.S. consumer price index report.
The data is expected to show that consumer prices rose 0.7% in May, while the core consumer price index (CPI), which excludes the volatile food and energy sectors, rose 0.5% in the month.
“We’re getting prepared for what the news might be regarding inflation tomorrow,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
“I view it as mixed. If the total is high and the core number shows some sort of drop, I actually think the markets could rally on that because it’ll show that things are kind of rolling over a bit.”
The fell 226.31 points, or 0.69%, to 32,684.59; the S&P 500 lost 39.66 points, or 0.96%, to 4,076.11; and the dropped 159.37 points, or 1.32%, to 11,926.91.
Investors have worried that rising inflation could keep the Federal Reserve on an aggressive path in raising interest rates.
The U.S. central bank has raised its short-term interest rate by three-quarters of a percentage point this year and intends to keep at it with 50 basis points increases at its meeting next week and again in July.
Alibaba (NYSE:) Group slid 7% after its affiliate Ant Group said it has no plan to initiate an initial public offering.
Declining issues outnumbered advancing ones on the NYSE by a 3.77-to-1 ratio; on Nasdaq, a 2.33-to-1 ratio favored decliners.
The S&P 500 posted one new 52-week high and 30 new lows; the Nasdaq Composite recorded 16 new highs and 101 new lows
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