Dow Sinks Nearly 300 Despite Inflation Figures


U.S. stock indexes closed lower Tuesday, giving up gains earlier in the session after a better-than-feared inflation reading and falling back into their September doldrums.


The Dow Jones Industrials tumbled 292.06 points to 34,577.57.


The S&P 500 shed 25.68 points to 4,443.05.


The NASDAQ Composite lost 67.82 points, to 15,037.76.


Stocks popped at the open after the August consumer price index, while still showing a significant jump in inflation, came in less than expected. However, the stock averages turned lower roughly half an hour into trading.


Shares linked to the economic recovery dropped. Bank of America lost 2.6%. General Electric took industrial shares into the red, closing 3.9% lower.


Apple shares closed nearly 1% lower after the company unveiled the new iPhone 13 at its annual fall product event, its stock movement in line with historical patterns.


Meanwhile, investors crowded into some of their favorite tech bastions with Microsoft ending the day 0.9% higher.


The August CPI, while still showing a significant jump in inflation, came in less than feared. August CPI jumped 0.3% month-to-month, or 5.3% from a year earlier, below the 0.4% increase and 5.4% annual gain expected respectively by economists polled by Dow Jones.


The less volatile core reading excluding food and energy costs showed just a slight gain, up 0.1% and below the 0.3% consensus increase expected by economists.


The major averages are all down at least 1% for September, and RBC doesn’t see the S&P 500 surging into the end of the year. The firm raised its year-end target for the benchmark index to 4,500 on Monday, up from a prior target of 4,325. The new target is less than 1% above where the index closed on Monday. The firm also introduced a 2022 year-end target of 4,900.


In Washington, House Democrats on Monday proposed new tax hikes on corporations and wealthy people to fund a $3.5-trillion social safety net and climate policy bill.


Prices for 10-Year Treasurys jumped, lowering yields to 1.28% from Monday’s 1.33%. Treasury prices and yields move in opposite directions.


Oil prices fell three cents to $70.42 U.S. a barrel.


Gold prices picked up $12.20 to $1,806.60 U.S. an ounce.




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