The three major US stock indices recorded a sharp decline, halting a 4-day winning streak, and incurred the largest single-day loss in more than two years.
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Wall Street suffers biggest loss in two years following inflation data
A massive sell-off sent US stocks sharply lower on Tuesday following a report showed US inflation rose unexpectedly in August, dashing hopes that the Federal Reserve will ease policy tightening in the near future.
Read also: Inflation rates in the United States rise to a new record
All three major US stock indices recorded a sharp decline to halt a 4-day winning streak, and incur the largest single-day loss in more than two years.
Increased risk aversion pushed all major sectors lower, with interest rate-sensitive technology stocks led by Apple, Microsoft and Amazon being the biggest losers.
The US Labor Department said its consumer price index rose 0.1% last month following remaining unchanged in July. Economists polled by Archyde.com had expected a 0.1% decline.
According to preliminary data, the “Standard & Poor’s 500” index fell by 177.72 points, or 4.32%, to close at 3932.69 points, while the Nasdaq Composite lost 631.41 points, or 5.16%, to fall to 11,635.01 points. The Dow Jones Industrial Average fell 1285.66 points, or 3.97%, to 3,1095.68 points.
