U.S. stocks dropped sharply Wednesday afternoon as investors digested a key report on the state of inflation in the U.S., which came in hotter-than-expected across most major metrics.
The S&P 500 fell by more than 1.5%, erasing earlier gains of as much as 1.2%. The index settled at 3,935.18, or its lowest level since March 2021. The Nasdaq dropped more than 3%, to end at 11,364.24, while the Dow declined by just over 1% to close at 31,834.11. Treasury yields gave back earlier gains, and the benchmark 10-year yield fell back below 3%.
The moves came in the wake of the Labor Department's April Consumer Price Index (CPI), which offered an update on price increases across the U.S. economy. While the report showed some deceleration in inflation compared to March, the rate of price increases came in well above many economists' estimates.
CW8888: Gap between DOW and STI are narrowing!
Posts
JePo blinked Thurs night (sg time).
ReplyDeleteBut everything still depends on CPI and PCE numbers. If still high then will continue to see a series of dead cat bounces lol.
US financial conditions have tightened considerably. Now need to see companies hiring less & lower wage increments. (Yeah bad news is good news lol)
People hoping for significant inflation deceleration by mid-July.
But then, where will be my Oct fire sale? :P