Stock market takes big dip following August inflation report
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.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The Tuesday inflation numbers also arrived just ahead of next week's Federal Reserve meeting, "where the central bank is expected to deliver its third consecutive 0.75 percentage point interest rate hike to tamp down inflation," CNBC writes.
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.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
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.
-
Today's political cartoons - April 21, 2024
Cartoons Sunday's cartoons - devilish decrees, biblical blunders, and more
By The Week US Published
-
5 carefully selected cartoons about the Trump-Daniels jury selection process
Cartoons Artists take on a stress-free life, rare peers, and more
By The Week US Published
-
Loire Valley Lodges review: sleep, feast and revive in treetop luxury
The Week Recommends Forest hideaway offers chance to relax and reset in Michelin key-winning comfort
By Julia O'Driscoll, The Week UK Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published