CPI data show that the Dow fell 240 points after hitting a 30-year high.
US stocks saw their worst decline for the month on Wednesday, as expected inflation figures show that prices are rising at the fastest rate in decades.
The Dow Jones Industrial Average ended 200kk lower. The Nasdaq Composite and benchmark S&P 500 also closed lower.
The 10-year Treasury yield rose 1.551% on Wednesday from 1.431% on Tuesday. Bond yields and prices move in opposite directions.
This is where the US indexes stood immediately after the ET closed at 4:00 pm on Wednesday:
The Consumer Price Index – a key measure of nationwide inflation – rose 6.2 percent year-on-year, the fastest rate of annual inflation since 1990. It also showed a rise in prices from a one-year jump in September.
The CPI rose 0.9 percent in October, higher than the 0.6 percent estimate by economists in a Bloomberg survey. Readings point to an acceleration from the 0.4% increase seen in September and the biggest jump in a month since 2008.
Rising inflationary pressures are dragging down both equities and bonds, according to Thornberg Investment Management’s portfolio manager, Lone Erikson, and could signal to the Federal Reserve an earlier-than-expected rise in interest rates.
“Treasuries and global developed autonomous production have risen due to rising market prices and future Fed Funds rates in the Fed Tapper, “Erickson said in a note on Wednesday.
He added that investors believe the Fed will be patient, but every month it looks like the central bank’s “temporary” dissertation is being tested.
Others are not so upset. Mike Loewengart, managing director of investment strategy at E-Trade Financial, said he stands by the Fed’s view that inflation will remain short-lived despite pricing pressures across the board. However, it is “more sticky than the initial estimates.”
“The expected inflation rate is apparently not what most would like to see – but keep in mind that there is no shortage of factors that can change the pace over time,” he said in a note on Wednesday. He said in a note on Wednesday.
Coinbase Global fell 11% when the largest cryptocurrency exchange in the United States reported third-quarter earnings that did not meet Wall Street expectations.
Rivian increased its IPO debut by 46%, giving the electric truck company a market valuation of over $ 110 billion on a completely weak basis.
In cryptocurrencies, the bitcoin hit a new high of ,000 69,000 on Wednesday when US inflation data showed prices were rising at the fastest rate in 30 years.
Twitter is launching a team called Twitter Crypto, dedicated to replacing the rapidly growing cryptocurrency and delving deeper into the “all things blockchain and web 3”.
Oil prices fell after an increase in inventories in a report by the Energy Information Administration last week.
West Texas Intermediate crude fell 3.58 percent to 81 81.14 a barrel. Brent crude, the international oil standard, fell 2.80 percent to .4 82.41 a barrel.
Gold, another widely viewed inflation hedge, rose 0.91 percent to 8 1,846.53 an ounce.