LIVE MARKETS — US stocks slide as hot inflation cools risk appetite
All 3 major US stock indexes end sharply lower; Nasdaq down the most Tech is weakest S&P 500 sector; healthcare leads gainers Dollar rallies; US crude up ~1%; gold drops >1%; bitcoin slides ~2% US 10-year Treasury yield dips to ~5.19% Welcome to the home for real-time coverage of markets brought to you reporters. You can share your thoughts with us at Us Stocks Slide As Hot Inflation Cools Risk Appetite Wall Street retreated on Wednesday as hot inflation data, mixed earnings and rising oil prices doused investor risk appetite. All three major US stock indexes closed lower on the day, with a 4.3% slide in chips dragging the Nasdaq down 1.9%, the tech-loaded index's biggest one-day drop since July 23. The session's biggest catalyst arrived before the opening bell in the form of the Labor Department's consumer price index (CPI), which showed inflation heating up as energy price pressures related to the Iran war — now in its eighth month — morphed into the sort of broad, systemic inflation that provokes rate hikes from the US Federal Reserve. Markets generally expect one more 25-basis-point rate hike before the year is out, and bets are growing that the Fed funds target rate
19% Welcome to the home for real-time coverage of markets brought to you reporters. You can share your thoughts with us at Us Stocks Slide As Hot Inflation Cools Risk Appetite Wall Street retreated on Wednesday as hot inflation data, mixed earnings and rising oil prices doused investor risk appetite. 9%, the tech-loaded index's biggest one-day drop since July 23.
The session's biggest catalyst arrived before the opening bell in the form of the Labor Department's consumer price index (CPI), which showed inflation heating up as energy price pressures related to the Iran war — now in its eighth month — morphed into the sort of broad, systemic inflation that provokes rate hikes from the US Federal Reserve. Markets generally expect one more 25-basis-point rate hike before the year is out, and bets are growing that the Fed funds target rate will be 50 bps higher before 2027 rolls around, according to CME's FedWatch tool.
Long-dated US Treasury yields turned lower as the CPI shock wore off, but the yield on 2-year notes, which reflect Fed policy expectations, advanced. 4%, respectively, as Houthis attacked Saudi Aramco's headquarters and Iran said it was deploying new tactics to target ships and keep oil prices high. Third-quarter earnings season, still in its infancy, continues to be mixed. Bank of America missed profit expectations while Morgan Stanley and BlackRock surpassed analyst estimates.
Earnings on tap for Thursday include US Bancorp, Charles Schwab and JB Hunt, the last of which could offer some insight regarding the effect of soaring diesel prices on trucking, and the movement of goods. On the economics front, yet another inflation indicator, the Labor Department's producer price index, is expected, as is retail sales data courtesy of the Commerce Department. Empire State, Philly Fed and jobless claims complete the crowded docket.
Here's your closing snapshot: (Stephen Culp) *** Earlier On Live Markets: Fed Calculus: Cpi And Rate Hike Bets Click Here Bofa Clients Return To Us Stocks As S&p 500 Hits Records Click Here S&p 500's Forward Pe Dips To 2023 Low, And Below Its 10-year Average Click Here Rising Consumer Prices, Oil And Treasury Yields Send S&p 500, Nasdaq Lower Click Here S&p 500 Futures Red After Hot Cpi Data Pushes Yields Higher Click Here Euro/yen Shorts On Japan Investor Oat Sales Overdone, Ubs Says Click Here What If Republicans Lose Both Chambers? Click Here Rbc Rotates Into Healthcare, Trims Us Tech Exposure Click Here Who’s Betting On An Earnings Boost For Us Stocks?
Click Here Stoxx Gains, Morgan Stanley Talks Up Earnings Click Here Before The Bell: Europe Eyes Firmer Start, Tech Looks Shaky Click Here Let The Doves Sing Click Here Closing snapshot