Dow plummets 1,200 points on rampant U.S. inflation

U.S. stocks fell sharply on Tuesday, with the Dow plunging 1,200 points, after a key August inflation report came warmer than economists expected, hurting investor optimism for less aggressive rises in prices. Federal Reserve interest rates.

Inflation

Jesse Pound and Carmen Reinicke for CNBC:

The Dow Jones Industrial Average slipped 1,276.37 points, or 3.94%, to close at 31,104.97. The S&P 500 fell 4.32% to 3,932.69 and the Nasdaq Composite fell 5.16% to close the day at 11,633.57.

More than 490 stocks in the S&P 500 fell … The August Consumer Price Index report showed a higher than expected inflation reading … Year-on-year, inflation was 8.3%.

The report is one of the last the Fed will see ahead of its September 20-21 meeting, where the central bank is expected to make its third consecutive 0.75 percentage point interest rate hike to reduce inflation. The unexpectedly high August report could cause the Fed to continue its aggressive hikes longer than some investors had anticipated.

MacDailyNews takes: After wandering aimlessly on the USS Transitory for too long, the delusional Fed is ridiculously too small, too late.

Recovering will be difficult. But, hey, good luck with that soft landing. ?

Shares of Apple (AAPL) fell $ 9.59 (-5.87%) to close at $ 153.84 in regular trading on Tuesday.

In January, Interactive Brokers founder Thomas Peterffy said: “1% or 2% [in interest rate hikes] it does not mean anything. If they really wanted to stop inflation, they would have to raise rates to 4%, 5%, 6%. “

The Fed’s current target interest rate range is between 2.25% and 2.50%.

It’s best to control inflation, if you know how, while you can. – MacDailyNews, May 11, 2021

Stopping the misleading crusade against domestic energy production and profligate federal spending and inflation will stop suddenly. It is not difficult. – MacDailyNews, May 11, 2022

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