New York: US stocks reversed early gains to end lower on Tuesday as investors digested the newly released consumer price data.
The Dow Jones Industrial Average was down 171.58 points, or 0.68 per cent, to 25,007.03. The S&P 500 fell 17.71 points, or 0.64 per cent, to 2,765.31, Xinhua news agency reported.
The Nasdaq Composite Index dropped 77.31 points, or 1.02 per cent, to 7,511.01.
The Consumer Price Index (CPI) for all urban consumers increased 0.2 per cent in February on a seasonally adjusted basis, in line with market consensus, the US Labor Department reported on Tuesday.
Over the last 12 months, the all items index rose 2.2 per cent before seasonal adjustment.
The index for all items less food and energy increased 0.2 per cent in February, and it rose 1.8 per cent over the past 12 months, the same figure as the prior two months.
“Commodity inflation is tame, as is evident in food, fuel and auto prices. But some services, especially energy services and insurance, are keeping inflation going. Inflation was in line with expectations this morning, but the core is nonetheless creeping back toward the Fed’s target,” said Chris Low, chief economist at FTN Financial, in a note.
Investors also kept a close eye on the replacement of the country’s secretary of state. Trump announced Tuesday on his Twitter that Rex Tillerson will no longer serve as secretary of state, and he will be replaced by Central Intelligence Agency (CIA) Director Mike Pompeo.