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Dow Slumps amid Inflation Concern

JPM

U.S. stocks declined sharply on Wednesday, led to the downside by technology shares as key inflation data showed higher-than-expected price pressures.

The Dow Jones Industrials tumbled 454.15 points, or 1.3%, to 33,815.01, following its worst day since February on Tuesday

The S&P 500 lost 67.86, or 1.6%, to 4,084.26,

The NASDAQ stumbled 294.93 points, or 2.2%, to 13,094.81.

Strength in bank stocks and energy shares, which could do well in an inflationary environment, helped support the broader market. JPMorgan rose 1%, while Occidental Petroleum climbed 6.5%. Chevron also traded 2% higher.

Inflation accelerated at its fastest pace since 2008 last month with the Consumer Price Index spiking 4.2% from a year ago, compared to the Dow Jones estimate for a 3.6% increase. The monthly gain was 0.8%, versus the expected 0.2%.

Prices for 10-Year Treasurys lost sharply, raising yields to 1.69% from Tuesday's 1.62%. Treasury prices and yields move in opposite directions.

Oil prices gained 70 cents to $65.98 U.S. a barrel.

Gold prices dropped $14.10 to $1,822 U.S. an ounce.



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