Markets Down on Deflation Worries, Consumer Sentiment
Wall Street is down across the board this morning as traders digest news of falling consumer prices and consumer sentiment.
In the first 30 minutes of trading, the Dow is down about 85 points, or almost 1 percent.
The broader S&P 500 is down about .8 percent, and the tech-heavy Nasdaq is down 1.2 percent.
The Labor Department reported Friday morning that consumer prices were flat in July and down 2.1 percent over the past year, the steepest plunge in 59 years. The news stokes fears of deflation, or a period of economic contraction when wages and prices fall hand-in-hand. Such conditions existed in the Great Depression.
Also Friday morning, a preliminary reading on consumer sentiment for August was down compared with July, according to the Reuters/University of Michigan report released moments ago.
And the Fed said this morning that U.S. industrial production rose for the first time in nine months. The figure was spurred by increased production in the auto sector, as GM and Chrysler emerged from government-backed bankruptcies.
August 14, 2009; 10:13 AM ET
Categories: The Ticker | Tags: Dow Jones, consumer prices, nasdaq, s&p 500
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Posted by: Dermitt | August 15, 2009 1:44 PM | Report abuse
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