Dow tumbles 1,200 points for worst day since June 2020 after hot inflation report; European markets close lower after hotter-than-expected U.S. inflation print
Stocks fell sharply on Tuesday after a key August inflation report came in hotter than expected, hurting investor optimism for cooling prices and a less aggressive Federal Reserve.
The Dow Jones Industrial Average slid 1,276 points, or 3.9%. The S&P 500 dropped about 4.3%, and the Nasdaq Composite sank more than 5%. More than 490 stocks in the S&P 500 fell, with Facebook-parent Meta dropping 8% and Caesars Entertainment losing 7.3%.
The August consumer price index report showed a higher-than-expected reading for inflation. Headline inflation rose 0.1% month over month, even with falling gas prices. Core inflation rose 0.6% month over month. On a year-over-year basis, inflation was 8.3%.
Economists surveyed by Dow Jones had been expecting a decline of 0.1% for overall inflation, with a rise of 0.3% for core inflation.
Albemarle surged to a record high Tuesday, despite the broad-based selling across the market. The lithium company has attracted interest from investors amid an expected boom in demand for electric vehicles. Shares of Albemarle have gained more than 27% this year.
The pan-European Stoxx 600 closed 1.5% lower, having previously been up more than 0.5%. Retail stocks and technology stocks both dropped 3.2% to lead losses as most sectors and major bourses slid into the red.
UBS Group plans to increase its dividend by 10% to $0.55 per share and expects its 2022 share repurchases to exceed $5 billion, the Swiss bank said on Tuesday.
UBS shares were indicated 1.2% higher in pre-market activity after what ZKB analyst Michael Klien called surprise news.
Source: CNBC, Investing.com