Dow plunges over 1,250 points after inflation report release, rapid rally

US stocks tumbled on Tuesday after the August Consumer Index report showed higher-than-expected inflation.

The Dow Jones Industrial Average fell 1,276.37 points, or 3.94%, to 31,104.97. The S&P 500 fell 177.72 points, or 4.32%, to 3,932.69 and the Nasdaq Composite plunged 632.84 points, or 5.16%, to 11,633.57.

It was the worst day for the Dow since June 2020. The downturn sparked a three-day rally.

The consumer price index rose 0.1% in August and 8.3% last year. The CPI measures inflation based on the daily cost of living for consumers.

Among technology stocks that posted sharp declines on Tuesday was Apple (AAPL), which closed at $153.84, down $9.59, or 5.87%. Qualcomm (QCOM) shares fell $8.07, or 6.07%, to close at $124.93.

“The CPI report was clearly negative for the equity markets. The hotter than expected report means we will see continued pressure from Fed policy through rate hikes,” Matt Peron, head of research at Janus Henderson Investors, told CNBC.

“It’s also pushing back any ‘Fed Pivot’ that markets were hoping for in the near future.” Dow plunges over 1,250 points after inflation report release, rapid rally

Fry Electronics Team

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