Dow Jones Opens Lower After CPI Inflation Print Raises Fed Worries

US stocks opened slightly lower on Thursday, with a mix of sectors taking a hit after a hotter-than-expected inflation reading raised concerns about the Federal Reserve's next moves. The Dow Jones Industrial Average led the losses, dropping 185 points, or nearly 0.4%, while the Nasdaq Composite fell 0.2% and the S&P 500 edged down just over zero.

Possible Causes

The sell-off followed the release of the May Consumer Price Index (CPI), which showed inflation accelerating on an annual basis, increasing the likelihood that the Fed will keep interest rates higher for longer. Investors had hoped the data would show a slowdown, paving the way for rate cuts later this year.

Context

This move comes after a relatively positive week for stocks. The Dow had gained about 1% over the past week before today's data. The hot inflation reading could reverse those gains.

Similar Moves in the Sector

Rate-sensitive sectors like technology and real estate were among the hardest hit. Stocks such as Broadcom (AVGO) and Caterpillar (CAT) experienced volatility, though specific details on their performance were not provided in the original report.