U.S. stocks turned south Wednesday afternoon, with modest early weakness in equities accelerating, as investors pored over a reading on October consumer inflation that came in much hotter than expected.

A weak auction of long-dated U.S. government bonds midday didn’t help the market’s complexion either.

How are stock indexes trading?

S&P 500 index

trades down 32 points. or 0.7%, at 4,653.

Dow Jones Industrial Average

trades 184 points, or 0.5%, lower at around 36,127.

The Nasdaq Composite Index

traded 220 points, or 1.4%, lower at around 15,666.

On Tuesday, the Dow fell 112 points, or 0.3%, after back-to-back gains, while the S&P 500 snapped an eight-day winning streak and the Nasdaq Composite ended a run of 11 consecutive gains.

What’s driving the market?

The Nasdaq Composite skidded decidedly lower Tuesday, on its way for a back-to-back decline and its worst one-day slump since Oct. 4, as a the 10-year Treasury note yield

rose by the most in one day since Feb. 25 and the 30-year Treasury bond

saw its biggest daily jump since March 12, following a poor auction of long-term bonds.

The decline in stocks and the sale of 30-year government debt that some analysts described as “disastrous,” comes after inflation data revived some bearish concerns about elevated pricing pressures and its potential to upend the current bull run for stocks.

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.

“If inflation doesn’t subside, the Federal Reserve may need to taper at a more substantial rate and hike interest rates, which could hurt stocks and bonds,” said Nancy Davis, founder of Quadratic Capital Management and portfolio manager of the Quadratic Interest Rate Volatility and Inflation Hedge Exchange-Traded Fund.

Separately, data showed first-time applications for unemployment benefits fell by 4,000, to 267,000, in the week ended Nov. 6.

The CPI update comes a day after news of higher U.S. producer prices. Meanwhile, China on Tuesday reported its own factory gate prices surged 13.5% in October, the highest level since 1996. Consumer prices in the country rose 1.5% to a 13-month high, driven mainly by a jump in prices for food and fuel.

“The October CPI report released today makes ugly reading for the Fed and risk-takers with a further broadening of excess inflation pressure highlighted in median and trimmed mean measures as well as a bounce in autos and energy,” wrote analysts at Evercore ISI, Krishna Guha, Peter Williams, and Tobin Marcus, in a Wednesday research note.

Stocks already were under selling pressure early Wednesday but tipped decidedly lower, following a poorly received auction of $25 billion in supply, which was described by Jefferies economists Thomas Simons and Aneta Markowska as one of the worst since 2011, by one measure.

Wednesday’s selloff comes after Tuesday’s losses halted the S&P 500 and Nasdaq Composite’s lengthy winning streaks.

Meanwhile, shares of Tesla

stabilized after tumbling 11% on Tuesday following a string of headlines that rattled investors. Founder and CEO Elon Musk over the weekend asked Twitter followers if he should sell 10% of his stock, with the majority saying yes, and his brother Kimbal sold shares a day before that tweet. After surging 42% in October, the electric-car maker’s stock has dropped 16% this week, and premarket gains of around 2% have eroded.

Meanwhile, Amazon.com

-backed electric-vehicle maker Rivian Automotive Inc.

made its debut on the Nasdaq Inc., up 28%. Rivian priced its initial public offering at $78 a share Tuesday evening.

Rivian IPO: 5 things to know about the Amazon-backed electric-vehicle maker

And: NIO forecast disappoints as Chinese electric-car maker faces supply-chain concerns

What companies are in focus?

Coinbase Global Inc.

stock was down more than 7%, after the cryptocurrency platform reported disappointing sales amid a summer slowdown in crypto trading.

DoorDash Inc.

stock climbed more than 10%, after the delivery company posted record sales and orders, and announced an all-stock deal valued at more than $8 billion for Finnish commerce-delivery platform Wolt.

Upstart Holdings Inc.

reported better-than-expected earnings for its latest quarter, but shares of the lending company fell nearly 21%.

Perrigo Co.

stock fell 12dis

% after disappointing earnings and a profit warning from the Dublin-based consumer self-care products maker, which said it saw record unshipped orders due to supply chain issues.

The Walt Disney Co. DIS will report earnings after the close on Wednesday. Shares were down less than 0.1%.

How are other assets trading?

The ICE U.S. Dollar Index
a measure of the currency against a basket of six major rivals, was up 0.4%.

The U.S. benchmark crude contract

edged up 0.2% to $84.34 a barrel. Gold futures 

settled at their highest since June, up $17.50, or 1%, to end at $1,848.30 an ounce.

The Stoxx Europe 600 

ended 0.2% higher, while London’s FTSE 100 

 rose 0.9%.

The Shanghai Composite

fell 0.4% and Hong Kong’s Hang Seng Index 

rose 0.7%, while Japan’s Nikkei 225 

fell 0.6%.

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