U.S. stocks opened lower on Wednesday after a data release showed inflation rose more than expected last month.
The Dow Jones industrial average declined 100 points at the open. The S&P 500 fell about half a percent, with energy as the worst-performing sector. The Nasdaq composite pulled back 0.4 percent.
The consumer price index rose 0.5 percent in January. Economists polled by Reuters expected a gain of 0.3 percent. Investors also digested weaker-than-expected retail sales for last month.
“You got the worst-case scenario with this economic data,” said Art Hogan, chief market strategist at B. Riley FBR. “You got a hotter-than-expected CPI number and weaker retail sales. Unfortunately, CPI gets much more focus than normal because of the wage growth number we saw” in the last jobs report.
The 10-year note yield spiked higher to trade around 2.87 percent on the back of the data release at 8:30 a.m. ET. It traded near 2.82 percent before then.
Stock futures erased their sharp gains following the data releases. At one point, Dow futures trade more than 300 points lower.
Concerns of rising inflation have recently sent jitters down Wall Street. Last week, all three major U.S. indexes finished the five-day trading period more than 5 percent down each, with the Dow delivering its worst performance since January 2016.
Those jitters also helped kick off a fresh bout of market volatility. In its previous eight sessions, the Dow has posted six triple-digit moves and two of those are 1,000-point losses.
In that time, the Cboe Volatility index (VIX) has surged nearly 50 percent. The market’s so-called fear gauge traded at 25.6 on Wednesday.
But stocks tried to recover from those steep losses. During Tuesday’s session, indexes bounced back from correction levels seen last week, with stocks posting a three-day winning streak.