Stock market today: Dow plunges 470 points as US stocks tumble on hot inflation report
Apr 11, 2024 ·
5m 57s
Title: US Stocks Plunge Following Surprising Inflation Report, Dimming Hopes for Fed Rate Cuts US stock markets experienced significant drops on Wednesday, driven by an unexpected increase in inflation for...
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Title: US Stocks Plunge Following Surprising Inflation Report, Dimming Hopes for Fed Rate Cuts
US stock markets experienced significant drops on Wednesday, driven by an unexpected increase in inflation for March, as reported by the latest Consumer Price Index (CPI). The inflation rate accelerated to 3.8% year-over-year, surpassing economists' forecasts and prompting a reevaluation of the Federal Reserve's interest rate plans. This hotter-than-expected inflation data led to a sharp decline in the Dow Jones Industrial Average by over 450 points and increases in bond yields, with the 10-year Treasury yield rising to 4.474%. The likelihood of interest rate cuts by the Fed, highly anticipated at the year's start, has diminished significantly. The CME FedWatch tool now indicates nearly no chance of a rate cut in June, a stark contrast to previous expectations. This recalibration of rate cut expectations comes amid concerns that persistent inflation could force the Fed to maintain higher interest rates for an extended period, impacting various market sectors including stocks, real estate, and cryptocurrencies.
Subtopics:
- Impact of the inflation report on stock market indices
- Changes in the likelihood of Federal Reserve interest rate cuts
- Speculation about future economic policies in light of persistent inflation
show less
US stock markets experienced significant drops on Wednesday, driven by an unexpected increase in inflation for March, as reported by the latest Consumer Price Index (CPI). The inflation rate accelerated to 3.8% year-over-year, surpassing economists' forecasts and prompting a reevaluation of the Federal Reserve's interest rate plans. This hotter-than-expected inflation data led to a sharp decline in the Dow Jones Industrial Average by over 450 points and increases in bond yields, with the 10-year Treasury yield rising to 4.474%. The likelihood of interest rate cuts by the Fed, highly anticipated at the year's start, has diminished significantly. The CME FedWatch tool now indicates nearly no chance of a rate cut in June, a stark contrast to previous expectations. This recalibration of rate cut expectations comes amid concerns that persistent inflation could force the Fed to maintain higher interest rates for an extended period, impacting various market sectors including stocks, real estate, and cryptocurrencies.
Subtopics:
- Impact of the inflation report on stock market indices
- Changes in the likelihood of Federal Reserve interest rate cuts
- Speculation about future economic policies in light of persistent inflation
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