Stocks fell sharply on Tuesday after a key August inflation report came in hotter than expected, hurting investor optimism for cooling prices and a less aggressive Federal Reserve.
The Dow Jones Industrial Average slid 861 points, or 2.7%. The S&P 500 dropped 3%, and the Nasdaq Composite sank 4%. More than 490 stocks in the S&P 500 fell, with Facebook-parent Meta dropping 7.6% and Caesars Entertainment losing 6.7%. …
“The velocity of this move has been breathtaking, however the market has recovered substantially off of recent lows. That this 4,000 level is still holding for the S&P 500 does reveal the fact that markets are bothered, but markets are not panicking,” said Jeff Kilburg, founder and CEO of KKM Financial.
The August consumer price index report showed a higher-than-expected reading for inflation. Headline inflation rose 0.1% month over month, even with falling gas prices. Core inflation rose 0.6% month over month. On a year-over-year basis, inflation was 8.3%.
Economists surveyed by Dow Jones had been expecting a decline of 0.1% for overall inflation, with a rise of 0.3% for core inflation.
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