NEW YORK (AP) -- Wall Street retreated Wednesday, pausing from its record-breaking run as a higher-than-expected producer price index reignited interest rate worries in the market.
The Labor Department said the PPI, an indicator of inflation, rose by 0.9 percent in December -- slower than in November, but faster than the market expected. The report raised concerns that the Federal Reserve might have reason to resume its rate-hiking campaign to curb inflation.
Inflation worries have been calmed lately by plummeting energy prices, which should save Americans some money on their fuel costs. Crude oil prices are down 16 percent on the year. But Wednesday's Labor Department report showed that even the core producer price index, which strips out food and energy, rose a bit quicker than expected.
Also Wednesday, investors weighed another batch of earnings reports that showed strength in some sectors and weakness in others.
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