Dow Falls 300 Points: Stocks Slip A Third Day After ‘Huge’ Inflation Reading

Dow Falls 300 Points: Stocks Slip A Third Day After ‘Huge’ Inflation Reading

Share to Linkedin Stocks are falling for the third-straight day this week after the highly awaited consumer price index report showed a staggering rise in prices last month, but while inflation still poses a big risk to the market, some experts believe prices should normalize now that the effects of stimulus checks have largely subsided. A trader works on the floor of the New York Stock Exchange. By 10:35 a. m. EDT, the Dow Jones Industrial Average had slipped 279 points, or 0. 8%, to 33, 990, while the S&P 500 dipped 0. 7% and the tech-heavy Nasdaq, which has been underperforming this year, fell 1. 4%. Feeding the ongoing market uncertainty, the Bureau of Labor Statistics reported Wednesday that consumer prices jumped 4. 2% year over year in April, marking the highest increase in nearly 13 years as investors worry over problematic inflation sparked by unprecedented government spending during the pandemic. After staying roughly flat Tuesday, big-tech stocks are taking the brunt of the hit Wednesday, with Dow components Apple, Microsoft and Intel each falling nearly 2% on fears that the Federal Reserve may raise interest rates—which experts agree would hurt tech stocks the most. Financial stocks, on the