Wall Street closes lower following inflation report

Stocks fell broadly on Wall Street Tuesday as new data showing that inflation is still running high put a spotlight on what action the Federal Reserve will take as it holds its last meeting of the year.

The S&P 500 index fell 0.7%, adding to its losses from a day earlier. Nearly 70% of the companies in the benchmark index fell, led by technology stocks. Only financial sector stocks eked out a gain.

The Dow Jones Industrial Average dropped 0.3%, while the techheavy Nasdaq composite slid 1.1%. Smaller company stocks fell more than the broader market, closing 1% lower.

The selling came as investors received another update on persistently rising inflation. The Labor

Department reported that prices at the wholesale level surged by a record 9.6% in November from a year earlier. The department’s producer price index measures inflation before it reaches consumers.

Businesses have been dealing with supply chain problems and higher costs for months. It has been a key concern for investors as big companies pass those costs off to consumers, who have so far been absorbing higher prices on everything from groceries to clothing and other consumer products. On Friday, the Labor Department reported that consumer prices surged 6.8% for the 12 months ending in November, the biggest increase in 39 years.

The discouraging reports on inflation precede the last two-day meeting of the Federal Reserve this year.