This is the result of intention policy choices by the Biden Administration and Democratic Congress.
NEW YORK (AP) — Stocks are falling on Wall Street after a highly anticipated report on inflation turned out to be even worse than expected. The S&P 500 was 0.8% lower in early trading Wednesday, and Treasury yields jumped as expectations built for the Federal Reserve to hike interest rates drastically at its meeting later this month in an effort to slow skyrocketing inflation. The Dow was down 0.6%. Technology stocks and other winners of the early days of the pandemic were again among the biggest losers. The Nasdaq was 1.1% lower, and its loss of 29% for the year is nearly double the Dow’s.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
NEW YORK (AP) — Early gains on Wall Street were doused Wednesday after the government reported that surging prices for gas, food and rent catapulted U.S. inflation to a new four-decade peak in June, likely sealing the case for another large interest rate hike by the Federal Reserve.
Futures for the Dow Jones Industrial Average and the S&P 500, which were pointed toward gains just minutes before the release of the report, pivoted sharply lower after the Labor Department’s report showed that consumer prices soared 9.1% compared with a year earlier.