U.S. stocks declined on Wednesday as key inflation data showed higher-than-expected price pressures.
The Dow Jones Industrials tumbled 263.08 points to 34,006.08, following its worst day since February on Tuesday
The S&P 500 lost 41.81, or 1%, to begin Wednesday at 4,110.29,
The NASDAQ stumbled 225.95 points, or 1.7%, to 13,163.47,
Inflation accelerated at its fastest pace since 2008 last month with the Consumer Price Index spiking 4.2% from a year ago, compared to the Dow Jones estimate for a 3.6% increase. The monthly gain was 0.8%, versus the expected 0.2%.
Tech shares, which have been under pressure this week and this month, fell again Wednesday. Shares of Alphabet, Microsoft, Netflix, Facebook and Apple all traded in the red, while shares of chipmakers Nvidia and AMD were also lower.
Strength in bank stocks and energy shares, which could do well in an inflationary environment, helped support the broader market. JPMorgan rose 1%, while Occidental Petroleum climbed 1.4%. Chevron also traded higher.
Prices for 10-Year Treasurys lost sharply, raising yields to 1.68% from Tuesday’s 1.62%. Treasury prices and yields move in opposite directions.
Oil prices darted higher $1.19 to $66.47 U.S. a barrel.
Gold prices dropped $4.20 to $1,831.90 U.S. an ounce.
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