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Stocks fell on Wednesday, with the Dow Jones Industrial Average falling more than 200 points as October’s consumer price index jumped at its highest rate in 30 years, raising fears of investors that higher inflation could derail a recent market rally. can.

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The Dow fell 0.7% more than 200 points, while the S&P 500 fell 0.8% and the tech-heavy Nasdaq Composite fell 1.7%.

According to Bureau of Labor Statistics data on Wednesday, the consumer price index—a key measure of inflation—in October rose 6.2% from a year earlier, the fastest increase in 30 years.

The latest report showed inflation is not slowing down: Fearful investors abandoned high-flying tech stocks and sought refuge in hedges such as gold and bitcoin, while Treasury yields also soared.

Following the latest inflation data, markets are now betting that the Federal Reserve may need to raise interest rates sooner than expected, with the first increase expected in early July 2022.

Shares of Big Tech stocks tumbled on Wednesday as investors turned away from growth stocks: Amazon, Google-parent Alphabet and Facebook-parent Meta all fell about 2%.

Tesla recovered some of its losses this week after shares rose 4.3%, while rival electric vehicle maker Rivian saw shares rise 29% after going public at a $90 billion valuation—following Facebook in 2012. Largest US IPO.

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