US stocks end lower after inflation report

​​​​​​​By Mucahithan Avcioglu

ISTANBUL (AA) - US stocks ended lower on the second trading day of the week, buffeted by an inflation report and concerns about the independence of the US Federal Reserve.

The Dow fell 0.8%, or 398.21 points, to close at 49,191.99.

The Nasdaq slipped 0.1%, or 24.03 points, to 23,709.87, and the S&P 500 lost 0.19%, or 13.53 points, to 6,963.74.

The Volatility Index (VIX), also known as the "fear index,” rose 5.69% to 15.98.

Investors are closely following the process that began after Fed Chair Jerome Powell announced the US Justice Department threatened him with criminal charges related to the renovation of Fed buildings.

On the data side, the US consumer price index (CPI) rose 0.3% monthly and 2.7% annually in December, in line with expectations.

US President Donald Trump said Powell should lower interest rates "meaningfully," following the inflation data

Trump slammed Powell as either “incompetent” or “crooked," adding, “That jerk will be gone soon."

US New home sales hit 737,000 units in October, above forecasts, but still falling 0.1% month-on-month.

On the corporate side, shares of JPMorgan Chase, one of the largest banks in the US, fell more than 4%, despite reporting better-than-expected earnings and revenue.

Shares of Delta Air Lines, which reported slightly lower-than-expected revenue, also fell 2.4%.

Furthermore, following news that Netflix is ​​considering converting its acquisition offer for Warner Bros. to an all-cash deal, shares of the streaming company gained 1% and Warner Bros. Discovery’s were up 1.6%.

Statements from Federal Reserve officials were also followed, with St. Louis Fed President Alberto Musalem saying he believes current monetary policy is well-positioned to respond to price stability or employment risks.

Musalam stated that he sees little reason for further monetary policy easing in the near term.

Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley will also release earnings reports later this week.