Nasdaq falls more than 3% as US inflation data offers some relief to investors

  • U.S. consumer prices fall in April; Inflation is still high
  • Coinbase Q1 falls on revenue decline and net loss
  • Indices: Dow down 1%, S&P 500 down 1.7%, Nasdaq 3.2%

NEW YORK, May 11 (Reuters) – U.S. stock markets fell sharply on Wednesday, with the Nasdaq falling more than 3% and the Dow falling for the fifth day in a row, and US inflation data did not dampen investors’ concerns about interest rates. And economics.

The benchmark S&P 500 lost 1.7% and is now down 18% from its January 3 record high.

The Labor Department’s Monthly Consumer Price Index (CPI) report suggested that inflation may have peaked in April, but will remain strong enough to keep the Federal Reserve’s foot on the brakes to reduce demand. read more

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The CPI rose 0.3% last month, the smallest gain since August, while economists who voted for Reuters predicted consumer prices would rise 0.2% in April.

Quincy Crosby, chief equity strategist at LPL Financial in Charlotte, North Carolina, said: “This does not eliminate the notion that there is still a lot to do to control inflation.

As the central bank raises rates, “the market is trying to understand whether we are going to see a slowdown in growth than expected,” he said.

Apple (AAPL.O) The stock fell 5.2% and was the heaviest in the Nasdaq and S&P 500 indices.

“Now there’s more focus on Apple,” Crosby said. “Considering its weight, Apple is the bellwether for the market from many perspectives.”

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Investors’ concerns about whether the central bank will continue to raise interest rates aggressively have hit growth stocks particularly hard. Consumer preference (.SPLRCD) And technology (.SPLRCT)Sectors each fell about 3%, leading the S&P 500 sector slump.

Traders work on the New York Stock Exchange (NYSE) site in New York City, USA on May 11, 2022. REUTERS / Brendan McDermid

Dow Jones Industrial Average (.DJI) The S&P 500 was down 326.63 points, or 1.02%, at 31,834.11 (.SPX) 65.87 points or 1.65% lost 3,935.18 and the Nasdaq combined (.IXIC) 373.44 points or 3.18% to 11,364.24.

Dow’s five-day decline is its longest consecutive loss since mid-February.

Energy (.SPNY) Shares ended higher and helped control some declines in the S&P 500 and the Dow. Exxon Mobil Corp. (XOM.N) Shares rose 2.1%.

Generally worth surpassing growth stocks. S&P Development Index (.IGX) The S&P value index fell 2.8% during the day against a 0.5% decline (IVX).

When the US Manufacturer Price Index data comes out on Thursday, investors are eager to see more data on inflation.

Stocks fell this year following rate concerns and the recent Ukrainian war and recent corona virus locks in China.

Coinbase Global Inc (COIN.O)Its first-quarter earnings fell 26.4%, missing its first-quarter earnings estimates amid turmoil in global markets, which curbed investor appetite for risk assets. read more

The volume of US exchanges was 15.38 billion shares, compared to the full session average of 12.75 billion in the last 20 trading days.

Problems declining at a rate of 2.16 to -1 in the NYSE; On the Nasdaq, the 3.70-to-1 ratio favored a decline.

S&P 500 1 new 52 week high and 67 new low; The Nasdaq Composite set 10 new highs and 1,221 new lows.

Report by Carolyn Waltkevich; Additional Report by Amruta Contegar, Devik Jain in Bangalore and Senate Curve in New York; Editing by Arun Coeur and Aurora Ellis

Our standards: Thomson Reuters Trust Principles.

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