Wednesday's markets: Stocks fall 74 points on renewed inflation fear
The Dow Jones Industrial Average skidded more than 74 points -- much of it late in the session -- as reeling bond prices shattered the fragile mood in the stock market.</br></br>The catalyst for the stock and bond declines was a rally in commodities prices that stoked fears of rising inflation. The Knight-Ridder Commodity Research Bureau's closely watched index of futures prices rose 3.09 to 258.91, an eight-year high.</br></br>The rise in commodity prices has led investors to once again fear that inflationary pressures are starting to percolate along with a rebounding economy.</br></br>Amid the drooping stock and bond prices, the dollar pushed ahead, hitting a 14-month intraday high against the mark and a 26-month intraday high against the yen.</br></br>The Dow industrials lost 74.43 to 5485.98, extending its four-session loss to 203.76, or 3.6%. With the dollar strengthening, key Dow components with heavy overseas operations felt the brunt of yesterday's selling pressure. Procter & Gamble fell 2 to 81 and Coca-Cola shed 2 7/8 to 78 7/8. Meanwhile, Aluminum Co. of America continued to lead the charge of commodity cyclical stocks, gaining 1 to 65 3/8, a 52-week high.