Shares of retailers and other consumer companies fell amid worries about inflation and the Federal Reserve's policy statement Wednesday.
Another wave of supply-chain disruptions caused by Omicron-variant-related lockdowns in China and elsewhere is likely to push inflation higher and force the Federal Reserve to become more aggressive, according to one brokerage.
"In coming months, the inflation dashboard is likely to show lingering supply chain problems, hot wage growth, strong rent growth, very high year-on-year core [consumer-price] inflation, and very high short-term inflation expectations," said economists at brokerage Goldman Sachs Group, in a note to clients.
A survey of U.S. consumer confidence fell 1.4 points in January to 113.8, indicating that Omicron and high inflation weighed on the minds of Americans early in the new year.
Shares of casino operator Bally's rallied after the company's largest shareholder, hedge fund Standard General LP, submitted an offer to buy the remaining stock it doesn't already own for $38 a share.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-25-22 1718ET
