Wall Street Falls On Report Of Higher Inflation Rate

A washout on Wall Street sent stocks sinking Wednesday (Thursday, April 11, 2024 in Manila), as worries rose that what seemed like a blip in the battle to bring down inflation is turning into a troubling trend, Stan Choe reported for the Associated Press (AP).

This is the third straight report to suggest progress on bringing high inflation down may be stalling. I Photo: New York Stock Exchange Facebook

The S&P 500 dropped 0.9%, and the vast majority of stocks within the index fell. The Dow Jones Industrial Average tumbled 422 points, or 1.1%, and the Nasdaq composite sank 0.8%. In stock markets abroad, indices were mixed across much of Europe.

In Asia, stocks rose 1.9% in Hong Kong but fell 0.7% in Shanghai after Fitch Ratings lowered its outlook for China’s public finances, Matt Ott and Elaine Kurtenbach also reported for AP.

Treasury yields also leaped in the bond market, raising the pressure on the stock market, after a report showed inflation was hotter last month than economists expected.

It’s the third straight report to suggest progress on bringing high inflation down may be stalling.

That hurts hopes that January’s and February’s disappointing inflation data may not have been as bad as they seemed because of some technical reasons. “There are still embers of inflation here and there in the economy,” said Joe Davis, chief global economist at Vanguard.