A massive sell-off on Tuesday pushed US equities steeply lower after a report showed US inflation unexpectedly rose in August, thwarting hopes that the Federal Reserve will ease policy tightening in the foreseeable future.
All three major US equity indices fell sharply, breaking a four-day winning streak and suffering the largest one-day loss in more than two years.
Increased risk aversion has pushed all major sectors to the downside, with interest rate sensitive tech stocks led by Apple, Microsoft and Amazon being the biggest losers.
The U.S. Department of Labor said its consumer price index rose 0.1% last month, after having remained unchanged in July. Economists interviewed by Reuters had expected a drop of 0.1%.
According to preliminary data, the Standard & Poor’s 500 index fell 177.72 points, or 4.32 percent, to close at 3932.69 points, while the Nasdaq Composite lost 631.41 points, or 5, 16 percent, down to 11,635.01 points. The Dow Jones Industrial Average fell 1285.66 points, or 3.97 percent, to 3,1095.68 points.
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