Festering inflation worries dog US stocks

Traders work on the floor of the New York Stock Exchange, on June 08, 2022. PHOTO: AFP

NEW YORK (AFP) - Wall Street stocks retreated on Wednesday (June 8) on festering worries about inflation as oil prices jumped and the White House warned of another gloomy consumer price report later this week.

US benchmark West Texas Intermediate finished near a 13-year high amid worries about tight petroleum product inventories at the start of the summer driving season.

Meanwhile, White House Press Secretary Karine Jean-Pierre told reporters the Biden administration expects Friday's consumer price index to be "elevated."

The comments bolster expectations for more Federal Reserve monetary tightening, reflected in a jump in the yield on the 10-year US Treasury note back above three percent.

"The Combination of higher crude prices and yields ticking up again has people concerned," said Art Hogan, strategist at National Securities.

The Dow Jones Industrial Average dropped 0.8 per cent to 32,910.90.

The broad-based S&P 500 shed 1.1 per cent to 4,115.77, while the tech-rich Nasdaq Composite Index declined 0.7 per cent to 12,088.27.

Among individual companies, Novavax jumped 5.4 per cent after a Food and Drug Administration advisory panel recommended the company's Covid-19 vaccine, a late-runner in the fight against the virus.

Roku surged 9.1 per cent on speculation the streaming platform could be acquired by Netflix, while Netflix itself rose 2.1 per cent.

Intel shed 5.3 per cent on worries that China lockdowns could pinch the chip maker's results.

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