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US stocks have been falling since they took a hard blow by Tuesday’s CPI data in the US for August with equity prices falling at their highest levels in more than 40 years.
The Dow Jones Industrial Average fell to 31,497 points after being about 133 points, or 2.8%, from today’s closing. The Dow Jones slumped more than 800 points Tuesday after hotter-than-expected inflation data dashed investors’ hopes that cooling price pressures would convince the Fed to moderate its campaign of interest-rate increases.
The Standard & Poor’s 500 also fell to 3,979 points, a loss of 3.2%, or 130 points. Nasdaq Heavy Industries fell to 11,770 points, after losing more than 50 points, or 4.00%.
The US Bureau of Labor Statistics reported this Tuesday that inflation, as measured by the Consumer Price Index (CPI), decelerated to 8.3% on a yearly basis in August from 8.5% in the previous month. The reading was slightly above consensus estimates pointing to a decline to 8.1%.
The Core CPI, which excludes volatile food and energy prices, rose by 0.6% in August (0.3% anticipated) and climbed to 6.3% on yearly basis, up from 5.9% in July and 6.1% expected.
