Stocks fell in afternoon trading on Wall Street as investors received another dire readout on inflation.
The S&P 500 fell 1.5%, the Dow Jones Industrial Average fell 1.5%, and the Nasdaq fell 1.6%. The Labor Department on Thursday reported that wholesale prices soared 11% in April from a year earlier. That follows a hot report on inflation at the consumer level on Wednesday.
Major indexes remain in the red for the week. Disney fell after missing analysts’ forecasts in its latest earnings report, while Coach and Kate Spade owner Tapestry rose following strong results. The yield on the 10-year Treasury note fell.
“The pullback in growth stocks, tech in particular, has been dramatic,” said Brian Price, head of investment management at Commonwealth Financial Network. “We have a reckoning, if you will, that maybe we did go too far too fast” with many of those stocks.