U.S. stocks trade lower on inflation fear

U.S. stocks traded lower on Wednesday after greater-than-expected inflation index, as crude oil futures rose slightly.

In the midday trading, the Dow Jones Industrial Average was down 51.67, to 12,734.97. The Standard & Poor's 500 index lost 3. 96 to 1,455.72, and the Nasdaq composite index fell 2.64 to 2,510. 40.

The Labor Department reported Wednesday that U.S. consumer prices increased 0.2 percent in January, powered by the biggest jump in the medical care price index in more than 16 years. Core consumer price index, which excludes food and energy prices, rose 0.3 percent in January, the biggest increase since June.

Both were above expectations and the increases will surely heighten concerns about developing inflation trends among policymakers, said David H. Resler, chief economist of Nomura International.

Meanwhile, Kenneth Beauchemin, U.S. Economist in Global Insight, continued to expect consumer inflation -- as measured by the core personal consumption expenditures deflator -- to dip below the 2 percent mark in the second half of the year.

Crude oil futures rose slightly on Wednesday, ahead of warmer weather in the northeastern United States.

Source: Xinhua