Dow Jones Falls Ahead of Inflation Report

The Dow Jones fell by 150 points ahead of the upcoming inflation report from the Bureau of Labor Statistics, reflecting investor concerns over persistent inflation and a strong job market. Despite expectations that the Consumer Price Index (CPI) inflation could rise slightly, it remains above the Federal Reserve's target of 2.0%. Core inflation, excluding food and energy, is currently at 3.3%, indicating that the Fed may halt interest rate cuts if this trend continues. Recent online sales data suggests inflation rates may not decrease to desired levels, leading to caution among investors regarding retail stocks. In contrast, home improvement retailers like Home Depot and Lowe's are performing well, suggesting a shift in consumer spending habits. Federal Reserve officials are closely monitoring the inflation report as they prepare for their final policy meeting of the year, where interest rate decisions will be made.