Stocks Sink as Inflation Data Dashes Hopes for Imminent Rate Cuts
• US stocks plummeted after a lackluster January inflation report, highlighting a mismatch between investor expectations for rate cuts and the Fed's more hawkish stance.
• The Consumer Price Index rose 0.3% monthly and 3.1% annually in January, more than expected, led by high shelter costs.
• Markets were reminded not to fight the Fed as higher rates sank stocks and bonds. The Fed likely welcomes the pullback as it fights inflation.
• Billionaire activist investor Carl Icahn disclosed a 9.9% stake in JetBlue, sending shares up over 14% premarket. He may seek board seats.
• A typo in Lyft's earnings initially sent shares surging 62%, but they pulled back after the company corrected its gross margin forecast on the call from 500 basis points to just 50.