Stocks tumble on the heels of hot August inflation report

US stock index futures fell sharply on Tuesday after data showed a faster-than-expected rise in consumer prices in August, confirming bets of a third straight 75 basis point rate hike by the Federal Reserve next week.

The Labor Department’s Consumer Price Index (CPI) showed the monthly CPI rose 0.1% in August from July, bucking expectations for a 0.1% decline, while rising to 8.3% from 8.5% year-on-year. has sunk.

Excluding the volatile food and energy components, the core CPI is likely to have risen to 6.3% from 5.9% in July, putting further pressure on the Fed to continue its rate hike frenzy.

Policymakers last week underscored their determination to keep raising rates pending a sustained fall in inflation, which is at a 40-year high and above the Fed’s 2% target.

Money markets now see a 79% chance of a 75 basis point rate hike and a 21% chance of a whopping 100 basis point hike by the Fed at its September 20-21 meeting.

At 8:36 a.m. ET, the Dow e-minis are down 332 points, or 1.03%, the S&P 500 e-minis are down 59.75 points, or 1.45%, and the Nasdaq 100 e-minis are down 265.5 points, or 2.08%.

The dollar, which has risen sharply this year in part on expectations of aggressive rate hikes by the Fed, pared losses and turned positive again.

Mega-cap tech stocks, including Apple Inc and Microsoft Corp, each fell about 2%, while Tesla Inc, Alphabet Inc, Inc and Meta Platforms Inc fell between 2.5% and 3.2% as yields for government bonds rose. Stocks tumble on the heels of hot August inflation report

Fry Electronics Team

Fry is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – The content will be deleted within 24 hours.

Related Articles

Back to top button