US Stocks dive after red-hot inflation data

14 Jul 2022 , 08:37 AM

The US share market finished the session in negative territory on Wednesday, 14 July 2022, amid concerns about the outlook for interest rates after Labor Department report showed a bigger than expected increase in U.S. consumer prices. The bigger than expected jump in Consumer Price Index (CPI), which tracks the prices that urban consumers spend on a basket of goods, has solidified expectations the Federal Reserve will raise interest rates by 75 basis points later this month and increases the likelihood of another 75 basis point rate hike in September. At the close of trade, the Dow Jones Industrial Average index declined 208.54 points, or 0.67%, to 30,772.79. The S&P500 index was down 17.02 points, or 0.45%, to 3,801.78. The tech-heavy Nasdaq Composite Index dropped 17.15 points, or 0.15%, to 11,247.58. Total 9 of 11 major S&P sectors ended the session lower, with industrials (down 1.2%), communication services (down 1.07%), healthcare (down0.94%), financials (down 0.93%), and materials (down 0.55%) issues suffered largest percentage losses. Consumer discretionary was the clear winner, gaining 0.86%. ECONOMIC NEWS: The Labor Department showed that consumer price index shot up by 1.3% in June after jumping by 1% in May. With the bigger than expected monthly surge, the annual rate of consumer price growth accelerated to 9.1% in June, from 8.6% in May. Excluding increases in prices for food and energy, core consumer prices advanced by 0.7% in June after climbing by 0.6% in May. The annual rate of core consumer price growth slowed to 5.9% in June from 6% in May Among Indian ADR, ICICI Bank fell 1.06% to $18.74, HDFC Bank fell 2.4% to $57.25, Tata Motors fell 1.9% to $26.62, Wipro fell 0.2% to $5.11, and INFOSYS fell 0.55% to $18.11. Azure Power Global fell 3.3% to $11. WNS Holdings added 0.2% to $74.70 and Dr Reddys Labs added 1.2% to $56.16.Powered by Capital Market – Live News