US Markets Slide as Hot CPI Data Sparks Rate Hike Fears
A stock market ticker board displays values for Dow Jones, Nasdaq, and S&P 500.
Key Highlights
US markets closed lower after October CPI data rose 0.4%, exceeding expectations and fueling fears of upcoming Federal Reserve interest rate hikes.
U.S. markets closed lower on Tuesday as a sell-off in Nvidia shares and stronger-than-expected inflation data hardened expectations for a rate hike from the Federal Reserve next month. A closely watched report released by the Labor Department showed consumer prices in the U.S. increased by more than expected in the month of October.
Key Index Moves
Major US indices retreated across the board during the trading session:
- Dow Jones Industrial Average decreased by 157.86 points or 0.30 percent to 52,231.89.
- Nasdaq fell by 187.26 points or 0.74 percent to 25,065.87.
- S&P 500 slipped by 29.01 points or 0.38 percent to 7,520.93.
The Labor Department said its consumer price index rose by 0.4 percent in October after climbing by 0.6 percent in September. The street had expected consumer prices to rise by 0.3 percent.
Sectoral Pressures
Sectoral performance reflected widespread risk aversion across interest-sensitive equities and precious metals:
- Gold stocks pulled back sharply with the NYSE Arca Gold Bugs Index plunging by 5.6 percent.
- The Philadelphia Housing Sector Index recorded a 2.6 percent slump due to substantial weakness among housing stocks.
Asian markets are trading mostly higher on Wednesday, buoyed by a decline in global crude oil prices which is expected to drive further regional sentiment.