Wall Street stocks fell early Wednesday, retreating for a third straight session following data showing a bigger-than-expected jump in consumer inflation in April.
Worries about higher prices have been a theme among investors in recent weeks, at times prompting pullbacks. The fear is that a sudden jump in price will lead to an about-face in Federal Reserve policy, jolting markets.
Compared to March of this year, the Consumer Price Index rose 0.8 percent last month, far above expectations, according to Labor Department data.
“The Fed is not going to panic after one startling consumer price index (CPI) report,” said a note from Pantheon Macroeconomics.
“But this report does mean that the first part of the higher inflation story — the reopening spike — is real. It’s no longer a forecast, and further hefty increases are coming.”
About 15 minutes into trading, the Dow Jones Industrial Average was down 0.4 percent at 34,137.00.
The broad-based S&P 500 dropped 0.6 percent to 4,127.39, while the tech-rich Nasdaq Composite Index fell 1.0 percent to 13,253.04.
After finishing at records last Friday, the Dow and S&P 500 have fallen the last two sessions, along with the Nasdaq.