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Stocks Tumble After Inflation Report. Dow Sheds 1,000 Points.

Published 09/13/2022, 03:02 PM
Updated 09/13/2022, 03:05 PM
© Reuters.

© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks sold off sharply after August’s inflation report came in higher than expected.

At 15:02 ET (19:02 GMT), the Dow Jones Industrial Average was down 1071 points, or 3.3%, while the S&P 500 was down 3.6% and the NASDAQ Composite was down 4.4%.

The consumer price index for August showed inflation rose 0.1% from July despite the drop in the price of gasoline. From last year, inflation was up 8.3%, while analysts had expected an 8.1% print.

The sell off hit tech stocks particularly hard, with Apple Inc (NASDAQ:AAPL) down 5%, and Microsoft Corp (NASDAQ:MSFT) down more than 4%, while shares of Meta Platforms Inc (NASDAQ:META) dropped more than 8%.

Money markets forecast an 81% chance of a 75-basis-point increase in interest rates when the Federal Reserve meets next week, and a nearly 20% chance of a full 100 basis point hike.

Tuesday's decline comes after stocks had rallied as investors took advantage of August's market declines.

This is the last inflation report before the Fed’s policy meeting next week. Investors had hoped the Fed would have some reason to raise rates less dramatically. But the Fed is determined to quash inflation despite the risk of pushing the economy into a recession. And Tuesday's report dampens hopes that inflation has already peaked.

Latest comments

you pay for gas three times, taxes that filled the national reserves oil stock ,at the pumps when you fill up,and the 3rd time when they refillthe national stock reserve.
hahahah, pure f...manipulation! form June 9.1, July 8.5 and August 8.3% l, here i see only reatreat of inflation! but no, today we witness how you can manipulate market, shame US ☝
lol They fought hard to keep the DOW from going lower than the biggest single day loss in market history, which was 3/2/2020. It was down nearly 1350 on the day but man there was one heckuva push to keep it above 1293.96.
Lol!! 😂😂
One of the best days in my investment history!
More fun to come this week!!!
More fun to come this week!!!
Fed funds will need to exceed 8%. Dow needs to drop another $10,000.
yeah that's right to zero, everything free...🤣🤣🤣🤣🤣
Red color for all stocks in Asia tomorrow 😬😨😥
For sure... Deep Red!!! not just for Tomm....
And the curtain rises on the "late trade" magic show.  Can't have a closing low in the BIGGEST INVESTMENT JOKE IN THE WORLD.
you're obviously upset about something as you keep posting nearly the same thing.  its not clear "fraud" or "joke" are appropriate words.  is your thesis that the markets are manipulated by some entity somehow?  If you spoke intelligently on the issue it would be easier to sympathize but the same post with no data just looks like a rant.
And shouting w/ all caps.  Mit is ranting and raving.
Buy.. Buy.. Buy.... Last leg of correction!! ... Bye Bye to Buy Buy!!
this week is down and come back next week
Next week.. if Fed goes by 100bps... next 1 month ... it will be bloodbath
forget one week.... Two more sessions... and Sp500 will make new monthly lows....
you have to be joking.
this week is down and come back next week
this week is down and come back next week
MUNDE
probability of 100 bps hike is increasing by the hour.... I wonder what was the euphoria all about... Fraudsters.. painting a rosy picture and robbing investor's money. Overnight optimism... building stories to show hope of recovery.. and then the Reality Strikes!! But they made their money...
Should be down 2,000+, but the fraud continues.
Stop with your bs politics. It has nothing to do with it. The fed over pumped during the Trump admin and continued into the Biden admin.
 IRA has done nothing yet, but your party was celebrating how it tamed inflation.  what it will do, unfortunately is make inflation worse as its another $600B pumped into the economy on projects which will do nothing, except lower the costs of building fabs for Intel, Qualcomm, NVIDIA, Cypress and AMD.   Doesnt help the family of four in Detroit at all.  in fact it spits in their face.
 its pretty accurate.  but DEM congress under Trump passed $2T in covid relief and that should never have happened.   Gov should have helped keep 65 y/os and other vulnerable people isolated and kept everyone else working without shutdowns.  it turns out to be a very survivable virus for non-smokers and healthy people (who have sufficient Vitamin D, and other essential nutrients).
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