U.S. stock markets closed sharply lower on Wednesday, with the Nasdaq down more than 3% and the Dow down for a fifth straight day, after U.S. inflation data did little to ease U.S. inflation concerns. investors about the outlook for interest rates and the economy.
The S&P 500 index closed down 1.65% at 3,935.18 points. The Dow Jones fell 1.02% to 31,834.11 points. The Nasdaq Composite technology index fell 3.18% to 11,364.24 points.
The benchmark S&P 500 is now 18% below its January 3 closing record.
The Labor Department’s monthly consumer price index report suggested that inflation may have peaked in April but should remain strong enough to keep the Federal Reserve on track to cool demand.
“That (the inflation data) hasn’t dispelled the notion that there’s more to be done in terms of controlling inflation,” said Quincy Krosby, chief equity strategist at LPL Financial in Charlotte, North Carolina.
“The market is trying to understand whether we will also see a larger-than-expected retraction in growth” as the Fed raises rates, she said.
Apple shares fell 5.2% and exerted the biggest negative influence on the Nasdaq and S&P 500 indices.
“There’s a lot of focus right now at Apple,” Krosby said. “Given its weight, Apple is the benchmark for the market from many perspectives.”
Source: CNN Brasil
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