Stock market takes big dip following August inflation report

(Image credit: Michael M. Santiago/Getty Images)

published 13 September 2022

It was a bad day on Wall Street.

Stocks took a big dip on Tuesday in the wake of a new consumer-price report, which saw inflation jump more than expected in the month of August (even with a drop in gas prices), The Wall Street Journal reports.

All 30 of the stocks in the Dow Jones Industrial Average and all 11 sectors of the S&P 500 took a plunge. More specifically, the Dow fell 1276, or 3.9 percent; the S&P fell 4.3 percent; and the Nasdaq plummeted 5.2 percent, CNN notes. It was the worst one-day performance since June 2020, fueled largely by concerns over how the Federal Reseve would respond to the newly-released data, the Journal writes.

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Though the August data suggests inflation is easing, the cooling is "at a slower pace than investors and economists had anticipated," the Journal adds. Economists that spoke with the Journal had expected prices to rise 8 percent annually in August, rather than 8.3 percent; still, last month's reading is down from the red-hot ratings from both July and June, which saw an 8.5 percent and a 9.1 percent annual rise in prices, respectively.

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Brigid Kennedy worked at The Week from 2021 to 2023 as a staff writer, junior editor and then story editor, with an interest in U.S. politics, the economy and the music industry.

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