After U.S. inflation data did little to ease market concerns about interest rates, major Wall Street indexes ended lower on Wednesday, led by a sharp drop in the Nasdaq. Inflation may have peaked in April, according to the Labor Department’s monthly consumer price index (CPI), but it should remain high enough to keep the Federal Reserve on top. Last month, the CPI rose 0.3%, the smallest increase since August, while experts polled by Reuters expected consumer prices to rise 0.2% in April. Quincy Krosby, chief equity strategist at LPL Financial in Charlotte, North Carolina, said: “There haven’t been enough good surprises to support the market.” “This is a market that is still trying to figure out if the Fed will be able to get inflation under control early on.” Consumer discretionary and technology led the declines among S&P 500 sectors. The prospect of higher interest rates hit growth stocks particularly hard.
Apple shares were the largest weight on the Nasdaq and S&P 500 indices. According to preliminary data, the S&P 500 fell 65.51 points, or 1.64%, to end at 3,935.54 points, while the Nasdaq Composite lost 370.94 points, or 3.16%, to 11,366.73. The Dow Jones Industrial Average fell 325.42 points, or 1.01%, to 31,835.32. “There’s a lot of attention on Apple right now,” Krosby said. “Given its weighting, Apple is the barometer of the market in many ways.” Energy stocks rose and helped limit some of the declines in the S&P 500 and Dow Jones. Investors are eager to see more inflation data on Thursday, when data from the U.S. Producer Price Index is due. Stocks are down sharply this year on worries about how aggressively the central bank might need to raise interest rates, and about the war in Ukraine and the latest coronavirus lockdowns in China. . Coinbase Global Inc slid after its first-quarter earnings missed estimates amid turmoil in global markets that dampened investor appetite for risky assets.
Summary of news:
- US STOCK MARKETS – Wall Street closed lower on investor disappointment with US inflation figures.
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