The Dow Jones Industrial Average (^DJI) was down 555.45 (-1.12%) points today, while Dow Futures (YM=F) was down 588.00 (-1.19%) points, as a wave of selling hit Wall Street. The primary narrative driving the market was the release of the January Personal Consumption Expenditures (PCE) Price Index, which showed a surprise acceleration in core inflation. This data prompted a sharp recalibration of interest rate expectations, leading the U.S. Treasury 10-year yield to spike and triggering a massive rotation out of cyclical stocks and into defensive havens.
The financial sector faced significant headwinds as higher-for-longer rate fears sparked concerns over loan demand and credit quality. American Express (AXP) was the biggest loser, down 6.84% to $311.98, followed by Goldman Sachs (GS), which was down 4.26% to $889.71. Technology and high-growth names also struggled under the weight of rising yields; Salesforce (CRM) was down 3.70%, IBM (IBM) was down 2.07%, and Apple (AAPL) was down 1.59%. Even the semiconductor giant Nvidia (NVDA) felt the pressure, down 1.62% to $181.97.
Conversely, healthcare and consumer staples outperformed as investors sought refuge from volatility. Merck (MRK) was the top gainer, up 2.40% to $122.24, while Verizon (VZ) was up 2.30%. Retail giant Walmart (WMT) was up 2.20% to $127.07, benefiting from its reputation as a value destination during inflationary periods. Other defensive winners included Amgen (AMGN), up 1.96%, McDonald’s (MCD), up 1.85%, and Coca-Cola (KO), which was up 1.00% to $81.26.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.