US Dow extends losses fifth session

12 May 2022 , 09:30 AM

The US stocks mostly tumbled on Wednesday, 11 May 2022, with the trio Dow Jones Industrial Average, the Nasdaq, and the S&P 500 settling session at their lowest closing levels in over a year. The risk aversion selloff emerged on Wall Street after inflation data did little to ease investor worries over the outlook for interest rates and the potential for an economic slowdown. At the close of trade, the Dow Jones Industrial Average index declined 326.63 points, or 1.02%, to 31,834.11. The S&P500 index sank 65.87 points, or 1.65%, to 3,935.18. The tech-heavy Nasdaq Composite Index dropped 373.44 points, or 3.18%, to 11,364.24. Declining stocks outnumbered advancing ones on the NYSE exchange by 2372 to 1033 and 118 closed unchanged. In the NASDAQ, 1043 issues advanced, 2893 issues declined, and 210 issues unchanged. Total 10 of 11 major S&P 500 sector indexes declined, with bottom performing issues were consumer discretionary (down 3.57%), information technology (down 3.3%), and communication services (down 1.51%), while top performing issues included energy (up 1.37%). The Labor Departments monthly consumer price index (CPI) report suggested inflation may have peaked in April but is likely to stay strong enough to keep the Federal Reserves foot on the brakes to cool demand. The CPI report showed the annual rate of consumer price growth slowed to 8.3% in April from a 40-year high of 8.5% in March. The annual rate of growth in core consumer prices also slowed to 6.2% in April from 6.5% in March. On a monthly basis, the Labor Department said its consumer price index rose by 0.3% in April after surging by 1.2% in March. Core consumer prices, which exclude food and energy prices, climbed 0.6% in April after rising by 0.3% in March. Market participants have recently expressed concerns more aggressive moves by the Fed and other central banks could lead to a period of stagflation or an outright recession. Investors are anxious to see more data on inflation Thursday, when U.S. producer price index data is due. Among Indian ADR, Wipro fell 3.38% to $6.01, ICICI Bank declined 1% to $18.18, and Azure Power Global fell 10.45% to $11.65. Dr Reddys Labs shed 1.92% to $49.62, Tata Motors fell 3.9% to $24.45, WNS Holdings fell 3.95% to $69.57, and INFOSYS sank 1.77% to $19.41. HDFC Bank grew 0.4% to $53.35. Powered by Capital Market – Live News