Wall Street major indexes fell Wednesday on Wednesday after stronger than expected inflation data raised concerns over tight monetary policy to combat what many investors fear could be a long-term slowdown in inflation.
Labor Department data show that U.S. consumer prices rose sharply in the nearly 12-year period in April as growing demand among the open economy contradicts supply constraints. In the 12 months to April, CPI shot 4.2%, down from a low point last year.
U.S. financial markets They have completely moved away from inflation with a 25-year interest rate increase in December 2022 after data, with Treasury’s 10-year yields jumping for two weeks high at 1.690%.
“There is uncertainty over how long commodity prices will be in the current economic recovery because we are seeing an increase in prices for housing, goods around the world and an increase in demand for goods and services,” said Brian Vendig, president, MJP Wealth Advisors in Westport, Connecticut.
“Price uncertainty and inflation prompted investors to reconsider their positions, especially in technology stocks and others who performed well last year.”
Among mega-caps, Facebook Inc, Amazon.com Inc, Apple, Google-parent Alphabet Inc and Microsoft Corp have dropped between 1.8% and 3.3% as high price expectations have reduced demand. of high rating stocks.
The tech-heavy Russell 1000 index index yielded 2.2%, hitting the 0.9% partner decline, which is mainly targeted at critical economic and energy stocks.
Wall Street fears have risen to 25 points for the first time since March 9.
Rising commodity prices and signs of shortages have exacerbated concerns over rising prices, causing sales that sent the S&P 500 almost 3% below its record to close higher on Friday, as the Fed has confirmed that any price pressures will pass.
It will take time before the US economy recovers enough for the Federal Reserve to consider regaining its support, Fed Deputy Chairman Richard Clarida said on Wednesday.
At 11:55 a.m. on ET, the Dow Jones Industrial Average was down 405.84 points, or 1.18%, at 33,863.32, the S&P 500 down 61.25 points, or 1.48%, at 4,090.85. Nasdaq Composite was down by 300.63 points, or 2.25%, to 13,088.79.
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Bank stocks, which normally pass through the rising interest rate, gained 0.6%. The energy sector also added 2.6% to the high oil price track.
Nine of the 11 major S&P sectors were low in technology, consumer selection services and communication services that led to losses.
Bumble Inc’s dating program has fallen 9.2% ahead of its first quarter results due to market closures.
Denied issues were more than 3.26-to-1 rating advisers on the NYSE and a 2.09-to-1 rating on Nasdaq.
The S&P index recorded a new 52-week high and no new low, while Nasdaq recorded 28 new highs and 68 new lows.
