US stocks opened lower after the release of inflation data, which showed that prices rose at a faster pace than expected in the past year. This news weighed heavily on investors' minds.
The Consumer Price Index (CPI) rose 6.8% in the past 12 months, exceeding the 6.5% forecast. This is the fastest pace of inflation since 1982.
Investors were not pleased with the inflation data, which suggests that the economy is growing too quickly. This can lead to higher interest rates and a decrease in stock prices.
The Dow Jones Industrial Average fell 150 points, while the S&P 500 declined 1.5%. The Nasdaq Composite dropped 2.2%, with tech stocks leading the decline.
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US Stocks Open Lower
The Dow Jones Industrial Average closed 200.52 points lower on Monday, or 0.45%, to 43,975.09.
Investors were anxiously awaiting inflation data this week to assess the outlook for interest rates and eye U.S.-China trade developments.
The S&P 500 lost 16.00 points, or 0.25%, to 6,373.45, and the Nasdaq Composite lost 64.62 points, or 0.3%, to 21,385.40.
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Shares of Nvidia and Advanced Micro Devices were volatile through the day, ending 0.35% and 0.28% lower respectively.
The inflation data is starting to embody the more direct tariff impacts on the consumer, raising concern that inflation will remain sticky, said Eric Teal, chief investment officer at Comerica Wealth Management.
Declining issues outnumbered advancers by a 1.18-to-1 ratio on the NYSE, with 251 new highs and 98 new lows.
The S&P 500 posted 15 new 52-week highs and 17 new lows, while the Nasdaq Composite recorded 73 new highs and 121 new lows.
Volume on U.S. exchanges was relatively light, with 15.5 billion shares traded, compared to an average of 18.3 billion shares over the previous 20 sessions.
The Dow Jones Industrial Average fell 98.2 points, or 0.24%, to 40,638.76 on Wednesday, after the latest consumer inflation data.
The S&P 500 fell 0.9 point, or 0.02%, to 5,496.42, while the Nasdaq Composite rose 35.5 points, or 0.21%, to 17,061.406.
GameStop shares lost 12.3% after the videogame retailer said it had filed for an offering of up to 20 million shares and reported lower second-quarter revenue.
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Tapestry, the company behind Coach and Kate Spade New York, fell after saying tariffs could take a big bite out of its profits.
Shares of Deere & Co. slid 7.5% after the heavy equipment manufacturer cut its forecast despite beating Wall Street's third-quarter sales and profit targets.
The US also releases its weekly report on applications for jobless benefits, which serves as a proxy for U.S. layoffs.
The dollar fell to 146.53 Japanese yen Thursday, down from 147.39 yen.
The euro slid to $1.1691 from $1.1705.
The S&P 500 was down 2.3% at open, after soaring 9.5% the day prior, while the Nasdaq fell 2.8%, also sliding back from its 12% surge on Wednesday.
Tech stocks were leading the falls, with Tesla dropping over 5% and Nvidia tumbling almost 5%.
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Market Reaction
US stocks opened lower after inflation data, with the S&P 500 down 2.3% and the Nasdaq falling 2.8% despite an upbeat CPI report showing US inflation came in weaker than expected in March.
The US falls were led by tech stocks, with Tesla dropping over 5% and Nvidia tumbling almost 5%. Apple and Amazon also fell over 2%.
Investors remain concerned about the lasting impacts of Trump's tariffs on the economy, despite the cooler-than-expected CPI data.
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China Trade Takes Center Stage
China trade developments are in focus as investors anxiously await updates. The recent agreement between Washington and Beijing expires on Tuesday, and investors are watching to see if the U.S. will extend the pause on higher tariffs.
The extension of the pause in tariffs on Chinese imports for another 90 days was announced by the White House, a move that was welcomed by U.S. President Donald Trump. Enabling semiconductor sales to China was a key issue in the agreement.
The levy on semiconductors could hit the margins of chipmakers like Nvidia and Advanced Micro Devices, which were volatile through the day and ended lower. Analysts are concerned that this could set a precedent for Washington to tax critical U.S. exports.
Citigroup and UBS Global Research have raised their year-end targets for the S&P 500, but the market's overall performance was mixed. The Dow Jones Industrial Average closed lower, while the Nasdaq Composite lost less than 1%.
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Stocks Down
US markets have been experiencing a downturn despite positive inflation data, with the S&P 500 and Nasdaq composite falling 2.3% and 2.8% respectively at the open.
Tech stocks were leading the falls, with Tesla dropping over 5% and Nvidia tumbling almost 5%. Apple and Amazon also fell over 2%.
Investors are concerned about the lasting impacts of President Trump's tariffs on the economy, even with cooler-than-expected CPI data. The subdued inflation is being taken as a positive, but some experts believe it's not the best route to take.
The US two-year Treasury yields slid on the inflation data, falling as much as 11 basis points, easing down to around 6 basis points at 3.85% in early trading.
US stocks were mostly down on Wednesday after the latest consumer inflation data, with the Dow Jones Industrial Average down 0.9% and the S&P 500 0.4% lower.
A measure of inflation that excludes volatile food and energy costs rose by a larger-than-expected 0.3% from a month earlier.
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Wall Street Update
The Dow Jones Industrial Average closed 200.52 points, or 0.45%, lower to 43,975.09 on Monday.
Declining issues outnumbered advancers by a 1.18-to-1 ratio on the NYSE, with 251 new highs and 98 new lows.
The S&P 500 lost 16.00 points, or 0.25%, to 6,373.45, with 15 new 52-week highs and 17 new lows.
Shares of Nvidia and Advanced Micro Devices were volatile, ending 0.35% and 0.28% lower respectively.
The Nasdaq Composite lost 64.62 points, or 0.3%, to 21,385.40, with 73 new highs and 121 new lows.
Volume on U.S. exchanges was relatively light, with 15.5 billion shares traded, compared to an average of 18.3 billion shares over the previous 20 sessions.
The Consumer Price Index (CPI) slowed to 2.5 per cent in August from a year ago, down from 2.9 per cent in July.
A measure of inflation that excludes volatile food and energy costs rose by a larger-than-expected 0.3 per cent from a month earlier.
The Dow Jones Industrial Average fell 98.2 points, or 0.24 per cent, to 40,638.76 at the opening bell on Wednesday.
GameStop shares lost 12.3 per cent after the videogame retailer said it had filed for an offering of up to 20 million shares and reported lower second quarter revenue.
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