By Liz Moyer
Investing.com -- U.S. stocks were falling after fresh data showed prices accelerated in January, stoking fears about interest rates.
At 10:31 ET (15:31 GMT), the Dow Jones Industrial Average fell 490 points or 1.5%, while the S&P 500 was down 1.6% and the NASDAQ Composite was down 2.1%.
A key inflation measure used by the Federal Reserve, called the personal consumption expenditure index, rose 0.6% in January, faster than the 0.2% gain in December.
On an annual basis, PCE rose to 5.4% in January from a 5.3% gain in December. Core prices, stripping out fuel and food, rose 0.6% and 4.7% for the month and year, respectively. The readings were higher than expected.
Hotter-than-expected inflation could encourage the Fed to keep interest rates higher for longer. The market expects the central bank to raise rates by a quarter of a percentage point in March and again in May. The policy rate is expected to reach 5.36% by mid-summer and could remain elevated for the rest of 2023.
Shares of Carvana Co (NYSE:CVNA) sank 16% after the used car dealer known for its car vending machines posted a wider-than-expected loss and declining revenue in the fourth quarter because demand for used cars has dwindled.
Boeing Co (NYSE:BA) stock fell 4.4% after the plane maker suspended deliveries of its Dreamliner 787 model to examine a fuselage component.
Oil was falling. Crude Oil WTI Futures were down 0.7% to $74.89 a barrel, while Brent Oil Futures were down 0.4% to $81.91 a barrel. Gold Futures fell 0.4% to $1,819.