The Dow shed 614 points on Wednesday, marking its worst single-day percentage drop in over a month. The S&P 500 and Nasdaq also settled lower, with the latter snapping a seven-day win streak as traders brushed off a producer price index (PPI) for December that hinted at easing inflation. A holiday sales miss, profit-taking, and tech layoffs also contributed to today's pessimism. As a result, the Cboe Volatility Index (VIX) edged higher to settle back above 20.

FED COMMENTS WEIGH ON OIL, GOLD PRICES

Oil prices pivoted lower on Wednesday, settling back below the $80 region after earlier surging to their highest level since December. Comments from St. Louis Fed President James Bullard, who indicated the Federal Reserve needs to quickly hike interest rates above 5%, weighed. February-dated crude dropped 70 cents, or 0.9%, to settle at $79.48 per barrel.

Gold prices had a volatile session as well, marking another eight-month high before finishing in the red. Bullard's remarked weighed on the yellow metal as well, as investors worried about how higher interest rates might impact the economy. February-dated gold shed $2.90 or 0.2%, to settle at $1,907 per ounce.

More By This Author:

Stocks Fall Despite Upbeat Inflation Data
Nasdaq Extends Win Streak As Dow, S&P 500 Pivot Lower
Dow Dinged As Big Bank Earnings Weigh