Wall Street indexes ended Wednesday’s sharp decline, driven by the shares of technology companies, as inflation data showed that price pressures are above expectations, CNBC reports.
The Dow Jones Industrial Average fell 1.8% after hitting the worst performance since February. S&P 500 fell by 2%, and Nasdaq Composite by 2.5%, informs News.ro.
Sales intensified as the S&P 500 fell below a low on Tuesday, a level closely watched by traders due to the recovery that took place during the previous day’s trading. After the S&P fell below that low, the index continued to decline.
US inflation peaked in April after 2008, with the consumer price index advancing 4.2% from a similar period last year, while the Dow Jones estimated a 3.6% increase. The monthly advance, of 0.8%, exceeded the anticipated increase of 0.2%.
Excluding volatile energy and food prices, the consumer price index increased by 3% compared to the same period in 2020 and by 0.9% compared to the previous month. Estimates were 2.3% and 0.3%.
Investors are worried that accelerating inflation will reduce companies’ margins and profits. If price pressures become too high for a long time, the Federal Reserve will have to tighten monetary policy.
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