Wed, 29 Sep 2021

U.S. stocks drop following CPI data

Xinhua
15 Sep 2021, 06:44 GMT+10

NEW YORK, Sept. 14 (Xinhua) -- U.S. stocks gave up earlier gains to finish noticeably lower on Tuesday as investors parsed the August consumer price index (CPI) report.

The Dow Jones Industrial Average fell 292.06 points, or 0.84 percent, to 34,577.57. The S&P 500 decreased 25.68 points, or 0.57 percent, to 4,443.05. The Nasdaq Composite Index slipped 67.82 points, or 0.45 percent, to 15,037.76.

All the 11 primary S&P 500 sectors ended in red, with energy and financials down 1.55 percent and 1.41 percent, respectively, leading the losses.

U.S.-listed Chinese companies traded lower with all the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day on a downbeat note.

The above market moves came despite data showing a key inflation reading that was tamer than expected.

The U.S. Bureau of Labor Statistics reported Tuesday that the country's CPI rose 0.3 percent in August for a 5.3-percent year-over-year gain, slightly below the 0.4-percent monthly consensus, but in line with the year-over-year consensus.

The core CPI, which excludes volatile food and energy prices, rose 0.1 percent for a 4.0-percent year-over-year increase, showed the report.

"There was cooling in price pressures in re-opening sectors like transportation and hotels that have been pushing up CPI the last few months, likely because demand weakened with the spread of the Delta variant," Chris Low and Will Compernolle, economists at FHN Financial, said Tuesday in a note.

"In fact, the same Delta variant causing prices to drop now will likely lead to price acceleration later, as global supply chains choke up again," they said, adding that "supply chain issues and labor shortages will keep price pressures in play throughout this year."

Inflation has been a focus on Wall Street in recent months, and it is also among the key economic indicators monitored by the U.S. Federal Reserve.

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