Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Nasdaq falls more than 3% as U.S. inflation data gives little relief to investors

Stock Markets May 11, 2022 07:10PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 10, 2022. REUTERS/Brendan McDermid 2/2

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks ended sharply lower on Wednesday, with the Nasdaq dropping more than 3% and the Dow falling for a fifth straight day after U.S. inflation data did little to ease investor worries over the outlook for interest rates and the economy.

The benchmark S&P 500 lost 1.7% and is now down 18% from its Jan. 3 record closing high.

The Labor Department's monthly consumer price index (CPI) report suggested inflation may have peaked in April but is likely to stay strong enough to keep the Federal Reserve's foot on the brakes to cool demand.

The CPI increased 0.3% last month, the smallest gain since last August, while economists polled by Reuters had forecast consumer prices gaining 0.2% in April.

"It did not dispel the notion that there's more to go in terms of reining in inflation," said Quincy Krosby, chief equity strategist at LPL Financial (NASDAQ:LPLA) in Charlotte, North Carolina.

"The market is trying to make sense of whether we're also going to see growth pullback more than expected" as the Fed raises rates, she said.

Apple shares (NASDAQ:AAPL) dropped 5.2% and were the biggest weight on the Nasdaq and S&P 500 indexes.

"There is much focus right now on Apple," Krosby said. "Given its weighting, Apple is the bellwether for the market from many perspectives."

Investor concerns about whether the Fed will continue to hike interest rates aggressively have hit growth stocks especially hard. The consumer discretionary and technology sectors fell about 3% each, leading S&P 500 sector declines.

The Dow Jones Industrial Average fell 326.63 points, or 1.02%, to 31,834.11, the S&P 500 lost 65.87 points, or 1.65%, to 3,935.18 and the Nasdaq Composite dropped 373.44 points, or 3.18%, to 11,364.24.

The Dow's five-day decline was its longest losing streak since mid-February.

Energy shares ended higher and helped to limit some of the declines in the S&P 500 and Dow. Exxon Mobil Corp (NYSE:XOM) shares were up 2.1%.

Value outperformed growth shares in general. The S&P growth index was down 2.8% on the day versus a 0.5% decline in the S&P value index.

Investors are anxious to see more data on inflation Thursday, when U.S. producer price index data is due.

Stocks have fallen this year following the rate concerns, as well as the Ukraine war and the latest coronavirus lockdowns in China.

Coinbase (NASDAQ:COIN) Global Inc slid 26.4% after its first-quarter revenue missed estimates amid turmoil in global markets that has curbed investor appetite for risk assets.

Volume on U.S. exchanges was 15.38 billion shares, compared with the 12.75 billion average for the full session over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 2.16-to-1 ratio; on Nasdaq, a 3.70-to-1 ratio favored decliners.

The S&P 500 posted 1 new 52-week highs and 67 new lows; the Nasdaq Composite recorded 10 new highs and 1,221 new lows.

Nasdaq falls more than 3% as U.S. inflation data gives little relief to investors
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (30)
John Dislias
HephaestusTrades May 12, 2022 4:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nasdaq was decline due to stop loss trimming. It is ridiculous what is happening every day
Aa Aj
Aa Aj May 12, 2022 4:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nothing makes the markets worse more then all these comments people write here without having proper information which effects on traders and leads them to take wrong decisions, chill guys
Tre Hsi
Tre Hsi May 12, 2022 4:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
LOL you think a real trader make his trade based on the comments he read here?
Franc Fil
Franc Fil May 12, 2022 1:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Inflation went down by 0.2% this is within measurement error. The real numbers are about 12%. The Fed will need to raise rates to 14 or 15% just to get a handle on inflation. goodbye stock market.
Tre Hsi
Tre Hsi May 12, 2022 1:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
did you come up with the numbers all by yourself or did you read that from the Q websites?
sonar sonar
sonar sonar May 11, 2022 10:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Guys calm down. Trade markets like a trader. Follow trend and make money with proper risk management strategy. No body cares market go up and down. Wall street is making money and will be making money. Period!!!
Samkelo Samza
Samkelo Samza May 11, 2022 10:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
good brother
ken shin
ken shin May 11, 2022 10:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
run away from the market and never return
Don Vo
Don Vo May 11, 2022 5:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Most of stocks will file bankrupt
Jamie An
Jamie An May 11, 2022 3:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Mr Powell lied to market again. How can we trust FR even Chair cannot predict Only 10days future inflation output.
Holy Light
Holy Light May 11, 2022 3:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
he just an interest rate bookkeeper
Marco cuevas
Marco cuevas May 11, 2022 3:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Once big money wallstreet goes role this will turn the other way...it makes no difference if the little guy goes broke, but once big money hedge fund manager can't make those yacht paymengs....oh no we can't have that!!! Things will improve.
John Martin
John Martin May 11, 2022 3:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This aint stock market. So stop writing ****** headlines. Write about casino market instead
Mitchel Pioneer
Mitchel Pioneer May 11, 2022 3:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Criminal intervention in the final hour as usual.  Can't have the laughingstock of the financial world below 32K without a flagrant attempt to prevent it.  The Ponzi Scheme would be down 2000 points today if left to fend for itself, and another 15000 in the coming weeks.  How many trillions will they spend to keep this laughable "market" from unwinding?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email