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U.S. Stocks Tumble After Higher Than Expected August Inflation; Nasdaq Down 4%

Stock Markets Sep 13, 2022 09:54AM ET
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By Liz Moyer

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

At 12:33 ET (16:33 GMT), the Dow Jones Industrial Average was down 926 points, or 2.9%, while the S&P 500 was down 3.2% and the NASDAQ Composite was down 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) and Microsoft Corp (NASDAQ:MSFT) down more than 4% each, while shares of Meta Platforms Inc (NASDAQ:META) dropped more than 7%.

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.

Oracle Corporation (NYSE:ORCL) shares rose 0.3% after meeting expectations on revenue, which was up 18% from last year.

Twitter Inc (NYSE:TWTR) shares dipped 1.9% as a whistleblower prepared to testify to the Senate about his claims of security lapses at the social media company.

Oil turned lower. Crude Oil WTI Futures fell 1.9%, to $86.10 a barrel and Brent Oil Futures crude fell 2%, to $92.01. Gold Futures was down 1.5% to $1714 an ounce.

U.S. Stocks Tumble After Higher Than Expected August Inflation; Nasdaq Down 4%
 

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Comments (25)
Tom Michaels
Tom Michaels Sep 13, 2022 1:37PM ET
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Mega scam, the manipulators are running wild in this rigged market, been doing this for many years but it's coming to an end. The end is near!
Ken Roth
Ken Roth Sep 13, 2022 1:37PM ET
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Remember their is a lot of money in stockmanipulation but it still takes suckers to go along and sell their stocks when shorters start shorting the market.
Mitchel Pioneer
Mitchel Pioneer Sep 13, 2022 1:31PM ET
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Another day of comedy in the laughingstock of the financial world.  A floor under the losses keeps equities propped, as the FED can't let the biggest investment JOKE on earth correct.  Watch in awe as more credible "buying" takes place "in late trade," and losses vanish magically into thin air.  Still 500+ points in manufactured "gains" in place, so what's "priced in," doesn't get "priced out."  Don't understand how anyone would consider investing in this criminally rigged casino.
Ric Later
riclater211 Sep 13, 2022 1:20PM ET
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all sectors are overvalued. don't sell good companies. wait and buy dips.
HIREN CHUGANI
HIREN CHUGANI Sep 13, 2022 1:13PM ET
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i really dont understand, why do u have to keep ur expectation really high? keep it real, atleast it is lower than the previous data. its not like inflation is going to reduce overnight, it will take time slowly slowly. BE LUCKY ITS LESSER THAN THE PREVIOUS DATA.
Gordan Zamic
Gordan Zamic Sep 13, 2022 12:32PM ET
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yeah, funny inflation is down from 8.5 to 8.3% but forecast was 8.1...and everything is red, pure manipulation
Bblue Grayy
Bblue Grayy Sep 13, 2022 12:32PM ET
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Exactly!
Ric Later
riclater211 Sep 13, 2022 12:32PM ET
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real inflation is closer to 15-20%
Granden Ledyard
Granden Ledyard Sep 13, 2022 12:32PM ET
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16.8% on shadow
James Hilsher
JCH007 Sep 13, 2022 12:09PM ET
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Inflation up 0.1% and the market sinks. What a freaking joke! Problem isn't a miniscule uptick in inflation. Problem is these *****algos and those controlling them.
Royce Murph
Royce Murph Sep 13, 2022 11:31AM ET
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Hmmm, And has nothing to due with Quad Witching Friday, does it!!???!??!?!?
Ken Roth
Ken Roth Sep 13, 2022 11:00AM ET
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sell all you have so we can buy cheap. Inflation is moving in right direction from CORE CPI 9.1 in june to 8.3 in August.
HIREN CHUGANI
HIREN CHUGANI Sep 13, 2022 10:51AM ET
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I really dont understand, why do u have to keep ur expectation really high? keep it real, atleast it is lower than the previous data. its not like inflation is going to reduce overnight, it will take time slowly slowly. BE LUCKY ITS LESSER THAN THE PREVIOUS DATA.
Nick Johnson
Nick Johnson Sep 13, 2022 10:49AM ET
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Apparently printing out boatloads of new currency can cause inflation....
 
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