US Inflation Rises Again, Wall Street Ends Red, Technology Stocks Fall

NEW YORK, KOMPAS.com – Bursa stock United States or Wall Street ended in red on Wednesday (11/5/2022) local time. The decline occurred after the announcement of the increase inflation US throughout April 2022 by 8.3 percent.

The Nasdaq Composite posted its highest decline of 3.18 percent to close at 11,364.24. The Dow Jones Industrial Average (DJIA) also fell 326.63 points, or 1.02 percent, to 31,834.11, and the S&P 500 slipped 1.65 percent to close at 3,935.18.

“Everyone wants a reduction in energy prices, food and labor costs, but at the same time, the mechanism to get that, is to raise interest rates,” said Susan Schmidt of Aviva Investors citing CNBC.

Read also: US Inflation Touches 8.3 Percent, Nears Highest Level in 40 Years

Tech stocks fell the most, as seen from shares of Meta Platforms, Apple, Salesforce and Microsoft, which fell around 4.5 percent, 5.2 percent, 3.5 percent and 3.3 percent, respectively. The decline in technology stocks came as investors continued the sell-off.

Meanwhile, Visa and Merck are the best performing stocks on the DJIA index. By sector, the movement was quite positive where the energy sector rose by around 1.4 percent, utilities also remained positive, around 0.8 percent, while the material sector was stagnant.

The April consumer price index (CPI) showed an 8.3 percent jump, higher than analyst expectations of 8.1 percent. The spike in the price of necessities is getting closer to the highest in the last 40 years at 8.5 percent.

Meanwhile core inflation, which excludes food and energy prices, rose 6.2 percent compared to analyst expectations of 6 percent. However, not all analysts believe the data shows inflation has peaked.

Read also: Press Inflation, Bank of England Follows Fed Raise Benchmark Interest Rate by 25 Basis Points, Highest in 13 Years

“With the annual rate dropping from 8.5 percent to 8.3 percent, one might say, the peak has been passed, but looking at what happened in August last year, it could well be up again,” said Bankrate chief financial analyst Greg McBride.

After the inflation release, the 10-year US Treasury yield jumped back above the 3 percent mark, but at the close of trading, the 10-year US Treasury yield settled at 2.93 percent.

Read also: The World’s Gold Luster Is Fading Under Strengthening US Dollar

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