U.S. stocks plummeted Tuesday after the August consumer index report showed inflation was higher than expected.
The Dow Jones Industrial Average fell 1,276.37 points, or 3.94%, to 31,104.97. The S&P 500 dropped 177.72 points, or 4.32%, to 3,932.69, and the Nasdaq Composite plunged 632.84 points, or 5.16%, to 11,633.57.
It was the worst day for the Dow since June 2020. The downturn snapped a three-day rally.
The consumer price index increased 0.1% in August and 8.3% over the past year. The CPI measures inflation through consumers’ day-to-day living expenses.
Some of the tech stocks that saw sharp declines Tuesday included Apple (AAPL), which closed at $153.84, down $9.59, or 5.87%. Shares of Qualcomm (QCOM) dropped $8.07, or 6.07%, to close at $124.93.
“The CPI report was an unequivocal negative for equity markets. The hotter than expected report means we will get continued pressure from Fed policy via rate hikes,” Matt Peron, director of research at Janus Henderson Investors, told CNBC.
“It also pushes back any ‘Fed pivot’ that the markets were hopeful for in the near term.”