Stocks Slide on Inflation Data, Extending Decline
U.S. stocks fell Wednesday, extending their recent declines after fresh data that showed the rise in consumer prices picked up speed in April.
The S&P 500 dropped 0.7%, after starting the week with its biggest two-day decline since early March. The Dow Jones Industrial Average slipped 0.5%, or about 181 points, while the tech-heavy Nasdaq Composite retreated 1.1%.
The consumer-price index jumped 4.2% in April from a year before, the Labor Department said Wednesday, the highest 12-month level since the summer of 2008.
The index measures what consumers pay for goods and services such as clothes, restaurant meals and vehicles. Core prices, which exclude the volatile categories of food and energy, rose 3% from a year earlier.
Concerns that a burst of inflation may prove more intense and longer-lasting than investors had expected sharpened focus on the data. Signs of mounting inflation have weighed on stocks this week. Rising commodity markets, supply-chain blockages and hiring difficulties have prompted some investors to expect a prolonged upswing in consumer prices.
Published at Thu, 20 May 2021 08:20:00 +0000