© Archyde.com. A trader is shocked as another trader follows the movement of stocks on the New York Stock Exchange on Tuesday. Photograph: Andrew Kelly, Archyde.com.
NEW YORK (Archyde.com) – A massive sell-off sent U.S. stocks sharply lower on Tuesday following a report showed U.S. inflation unexpectedly rose in August, dashing hopes that the Federal Reserve will ease policy tightening in the near future.
All three major US stock indices fell sharply, halting a four-day winning streak, and incurring the largest one-day loss in more than two years.
Increased risk aversion pushed all major sectors lower, with interest rate-sensitive technology stocks led by Apple (NASDAQ:), Microsoft and Amazon (NASDAQ:) the biggest losers.
The US Labor Department said its consumer price index rose 0.1 percent last month, following remaining unchanged in July. Economists polled by Archyde.com had expected a 0.1 percent drop.
According to preliminary data, the index fell by 177.72 points, or 4.32 percent, to close at 3932.69 points, while the Nasdaq Composite lost 631.41 points, or 5.16 percent, to fall to 11,635.01 points. The industrial index fell 1285.66 points, or 3.97 percent, to 3,1095.68 points.
(Prepared by Mustafa Saleh for the Arabic Bulletin)
