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Wall Street retreats on inflation concerns

(Xinhua)
Updated: 2008-06-18 13:54

Wall Street retreated Tuesday as the latest economic data stirred investors' concerns on inflation.

The US Labor Department said its index of producer prices jumped 1.4 percent in May, the largest increase since November.

The core producer price index, which strips out often volatile food and energy prices, rose by a mild 0.2 percent, but investors remain concerned that companies are having to swallow large cost increases.

The US Commerce Department reported a 3.3 percent decline in May home construction, indicating persistent weakness in the ailing housing market.

Goldman Sachs, the world's largest investment bank, says strong asset management and equity underwriting pushed second-quarter profit above Wall Street expectations.

The Dow Jones industrial average was down 108.78 points, or 0. 89 percent, to 12,160.30. The Standard & Poor's 500 Index finished down 9.21 points, or 0.68 percent, at 1,350.93. The Nasdaq Composite Index ended the session down 17.05 points, or 0.69 percent, at 2,457.73.