Nasdaq Tumbles 1.88 Percent as Inflation Data Rattles Wall Street
(MENAFN) New York equities closed lower midweek after September inflation data pointed to accelerating price pressures, with tech shares taking the heaviest losses.
The Nasdaq Composite dropped 1.88%, or 511.51 points, to finish at 26,692.87. The S&P 500 shed 1.11%, or 86.51 points, to settle at 7,718.94. The Dow Jones Industrial Average slipped a more modest 48.62 points, or 0.09%, to end at 51,621.48.
Anxiety spiked as the Volatility Index (VIX), often referred to as the market’s “fear index,” rose 10.48% to 16.87.
Inflation Data Overshoots
Annual inflation reached 3.7% in September, above estimates. Monthly inflation was 0.6%, matching expectations. The monthly figure was the highest in five months, and the annual rate was a four-month high.
Gasoline was the main driver. The gasoline price index jumped 9.1% from August, accounting for more than half of the monthly increase.
Treasury Yields and Dollar Surge
The 10-year US Treasury yield climbed 11 basis points to 5.33% after the release, then steadied near 5.2%. The 30-year Treasury yield touched 5.63% during the session before easing to 5.52%.
The US dollar index gained 0.7% to 102.94, its highest level of the year.
European Markets Close Mostly Higher
European shares finished mostly in positive territory, with the UK’s FTSE 100 the exception. The pan-European Stoxx Europe 600 rose 0.43% to 637.75 points.
The FTSE 100 fell 0.7% to 10,724.86. Germany’s DAX 40 edged up 0.15% to 25,298.61, and France’s CAC 40 gained 0.58% to 7,873.11. Italy’s FTSE MIB 30 advanced 0.61% to 49,753.84, while Spain’s IBEX 35 added 0.1% to close at 19,230.70.
The Nasdaq Composite dropped 1.88%, or 511.51 points, to finish at 26,692.87. The S&P 500 shed 1.11%, or 86.51 points, to settle at 7,718.94. The Dow Jones Industrial Average slipped a more modest 48.62 points, or 0.09%, to end at 51,621.48.
Anxiety spiked as the Volatility Index (VIX), often referred to as the market’s “fear index,” rose 10.48% to 16.87.
Inflation Data Overshoots
Annual inflation reached 3.7% in September, above estimates. Monthly inflation was 0.6%, matching expectations. The monthly figure was the highest in five months, and the annual rate was a four-month high.
Gasoline was the main driver. The gasoline price index jumped 9.1% from August, accounting for more than half of the monthly increase.
Treasury Yields and Dollar Surge
The 10-year US Treasury yield climbed 11 basis points to 5.33% after the release, then steadied near 5.2%. The 30-year Treasury yield touched 5.63% during the session before easing to 5.52%.
The US dollar index gained 0.7% to 102.94, its highest level of the year.
European Markets Close Mostly Higher
European shares finished mostly in positive territory, with the UK’s FTSE 100 the exception. The pan-European Stoxx Europe 600 rose 0.43% to 637.75 points.
The FTSE 100 fell 0.7% to 10,724.86. Germany’s DAX 40 edged up 0.15% to 25,298.61, and France’s CAC 40 gained 0.58% to 7,873.11. Italy’s FTSE MIB 30 advanced 0.61% to 49,753.84, while Spain’s IBEX 35 added 0.1% to close at 19,230.70.
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