S&P 500 and Nasdaq Composite book worst day in over 5 weeks as 30-year government bond yield surges

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U.S. stocks skidded lower Wednesday, as a reading of consumer inflation rose in October to the highest level since 1990, at least partly driven by supply-chain disruptions in the wake of the COVID-19 pandmeic and strong consumer demand. The Nasdaq Composite Index COMP, -1.66% fell 1.7% to 15,623, marking the sharpest one-day decline since Oct. 4 when the technology-laden index fell more than 2%. The S&P 500 index SPX, -0.82% finished down 0.8% to 4,646, also representing the worst day since early October when it fell 1.3%. The Dow Jones Industrial Average DJIA, -0.66% closed down 240 points, or 0.7%, at 36,080. The consumer-price index rose 0.9% in October, compared with economists’ expectations for a rise of 0.6%. The core reading, which excludes volatile food and energy prices, rose 0.6% versus expectations for a 0.4% rise. Year over year, CPI rose 6.2%, a nearly 31-year high and more than triple the Federal Reserve’s 2% target. In corporate news,Rivian Automotive Inc. RIVN, +29.14% made its debut on the Nasdaq Inc., surging nearly 30%. Moves in stocks were already tilting lower but losses accelerated after a weak auction of 30-year Treasury TMUBMUSD30Y, 1.928% pushed the yield of the long bond up by the most since March 12, Dow Jones Market Data showed.

This article was originally published by Marketwatch.com. Read the original article here.

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