The Dow Fell 250 Points After This Surprising Stock Posted Poor Earnings
The Dow Jones Industrial Average gave up another 254 points today, as the first half of the year came to an end in what has been a brutal six months for stocks. The Dow finished the first half of the year down nearly 16%. Investors have spent the year battling high inflation, rapidly rising interest rates, the Fed's reduction of its balance sheet, Russia's ongoing invasion of Ukraine, and a looming recession.
Today's sell-off didn't appear to be anything new, although the Fed's preferred gauge for inflation, the core personal consumption expenditures price index, rose 4.7% in May compared to a year prior. Experts had actually been projecting a 4.8% increase, so the news wasn't as bad as expected -- but inflation is still high and it confirms what has already been known.
The longer inflation persists, the more aggressive the Fed has to be with rate hikes to get inflation under control, which could continue to create market volatility. Although the majority of the Dow's 30 stocks finished in the red today, one in particular really dragged the Dow down after a poor earnings release this morning.
Source Fool.com
