US Stock Market Tumbles As Inflation Peaks 13 Year High

All the major U.S. stock market benchmark indexes plunged on Wednesday, May 12, as the consumer price index in April saw the highest growth in 13 years.

The higher inflation data has sparked concerns among the investors over the possibility of the Federal Reserve raising the interest rate sooner.

The Dow Jones Industrial Average lost 681 points on Wednesday while S&P 500 and tech-savvy NASDAQ Composite lost 89 points and 356 points respectively.

Except in the energy sector, shares in all the other sectors declined on Dow Jones and S&P 500. Consumer cyclical and technology stocks dropped the most in percentage.

The S&P 500 fell 2.14 percent to 4,063.04 and Dow Jones declined 1.99 percent to 33,587.66. NASDAQ Composite Index was tumbled 2.67 percent to 13,031.68. The small-cap Russell 2000 was down 3.26 percent to 2,135.14.

The Labor Department said the consumer price index in April rose 4.2 percent from a year earlier, representing the highest growth since 2008. The consumer prices increased 0.8 percent in April from March on a seasonally adjusted basis. The price of used cars and trucks grew 10 percent during the month and accounted for over a third of the index growth.

Meanwhile, the U.S. government’s budget deficit in April declined 69 percent year over year to US$226 billion, according to the latest data from the U.S. Department of the Treasury. However, the deficit from October to April period climbed 30 percent to US$1,932 billion.

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Top Gainers

Top performers on S&P 500 were NortonLifeLock Inc (7.19%), Viatris Inc (3.83%), Perrigo Company PLC (3.20%) and Valero Energy Corp (2.93%)

Curis Inc (65.51%), Lucira Health Inc (44.20%), Autolus Therapeutics PLC (35.47%) and Summit Wireless Technologies Inc (31.01%) were top performers on NASDAQ.

On Dow Jones, Merck & Co Inc (0.70%) and Chevron Corp (0.63%) gained.

Top Losers

Top laggards on S&P 500 were Penn National Gaming Inc (8.41%), Caesars Entertainment Inc (8.30%), Gap Inc (8.02%) and D.R. Horton Inc (7.28%).

Array Technologies Inc (46.05%), Lianluo Smart Ltd (37.92%), FTC Solar Inc (25.13%) and Sonim Technologies Inc (22.76%) were among the top losers on NASDAQ.

On Dow Jones, Home Depot Inc (4.13%), Honeywell International Inc (3.98%), Boeing Co (3.54%) and Microsoft Corp (2.94%) were laggards.

Volume Movers

Top volume movers were Apple Inc (27.10M), Sundial Growers Inc (16.34M), General Electric Co (13.35M), Second Sight Medical Products Inc (12.59M), Microsoft Corp (11.89M), Bank of America Corp (11.31M), Ford Motor Co (10.43M) and Intel Corp (10.00M)

Futures & Commodities

Gold futures fell 1.10 percent to US$1,815.85 per ounce on Wednesday. Silver dropped 2.06 percent to US$27.098 while copper decreased 0.94 percent to US$4.7172 per ounce.

Brent oil futures increased slightly by 0.03 percent to US$68.96 per barrel while WTI crude rose 0.69 percent to US$ 65.73.

Bond Market

The 30-year Treasury bond yields grew 2.62 percent to 2.414 while the 10-year bond yields rose 4.27 percent to 1.693.

US Dollar Futures Index was up 0.74 percent to US$90.787.