Stocks Tumble As Prices Rise

Summary


NEW YORK - Wall Street skidded lower Wednesday after an upswing in consumer prices intensified fears that the Federal Reserve will extend its nearly two-year string of interest rate increases. The Dow Jones industrial average had its biggest one-day loss in three years, and the Nas-daq composite index turned negative for 2006.

Investors were spooked by a Labor Department report that said its consumer price index swelled 0.6 percent in April, topping predictions of 0.5 percent. But the core price index - without food and energy - also gained 0.3 percent, ahead of estimates and adding to worries that soaring oil prices have begun to lift prices elsewhere.

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Stocks Tumble As Prices Rise

The inflation data dragged bonds lower and overshadowed solid ...

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