US STOCKS-Wall Street closes lower as economic data raises long-term inflation threat

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* US consumer prices record biggest annual increase since 1990

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* Tesla rivals Rivian Automotive boom at market debut

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*Disney results expected (updates after market closure)

NEW YORK, Nov 10 (Businesshala) – Wall Street ended the session in negative territory on Wednesday as rising consumer prices curbed investor risk appetite, bucking concerns of a longer wave of heated inflation.

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All three major US stock indexes lost ground, extending their losses throughout the trading day and adding to Tuesday’s selloff, which broke the S&P 500 and the Nasdaq’s eight-session all-time closing highs.

“It should come as no surprise that there was a truly historic race for the market to take a standstill,” said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. “But we think there are enough tailwinds at the end of the year to move the market up.”

The Labor Department’s Consumer Price Index (CPI) delivered a higher-than-expected 0.9% jump and the fastest year-over-year gain in 31 years.

The report indicated that the current inflation wave as a result of the increasingly entangled global supply chain may take longer to subside – including that of the US Federal Reserve – than expected.

“The inflation story is really the driver that drives all things,” Mayfield said. “It will affect Fed policy and fiscal policy, it is the driver of interest rates. It’s hard to talk about anything other than inflation.”

And Gregory Dako, chief economist at Oxford Economics, believes the report means that current price spikes have some staying power.

“I think things will continue to get worse before getting better in terms of the inflation outlook because we don’t see core inflation peaking until sometime in early 2022,” Dako said.

The graphic shows core CPIs along with other indicators and where they stand relative to the Fed’s average annual 2% inflation target.

The CBOE Volatility Index, an indicator of investor concern, touched its highest level in nearly a month.

Unofficially, the Dow Jones Industrial Average fell 241.69 points, or 0.67%, to 36,078.29, the S&P 500 fell 38.54 points, or 0.82%, to 4,646.71, and the Nasdaq Composite fell 264.41 points, or 1.66%, to 15,622.13.

Tech weighed the biggest on the S&P 500, with megacaps Apple Inc. and Microsoft Corp. among the biggest drags.

Third-quarter earnings season has reached its final stage, and 81 percent of reporting companies have beaten expectations.

The Walt Disney Company is expected to post quarterly results after the bell.

Tesla Inc reversed several sessions of decline in the wake of Twitter users voting CEO Elon Musk whether he should sell his 10% stake in the company he founded.

It comes as rival electric vehicle maker Rivian Automotive Inc. expected to raise about $107 billion in its debut as a publicly traded company.

Shares of retail trading platform Robinhood Markets Inc added to their losses two days after the company reported a security breach affecting 5 million customers.

Reporting by Stephen Culp; Additional reporting by Karen Pierog in New York and Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by Diane Craft

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