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The US stock market fell on inflation data


February, 11 2022
watermark Economic news

US stock indexes fell sharply after the publication of statistics on inflation in the United States. 


According to the Ministry of Labor, consumer prices (CPI) jumped 7.5% in January compared to the same month in 2021, which was a record inflation rate since 1982. In December last year, the growth rate of consumer prices accelerated by 7%.


After the release of the data, the yields of American government securities jumped sharply. The interest rate of ten-year US Treasuries has risen above the 2% mark for the first time since 2019.


The stock market did not stand aside either: indicators of all 11 S&P 500 industry groups ended trading in the red on Thursday, the subindex of technology companies most sensitive to interest rate hikes fell by 2.1%. The value of Qualcomm Inc. shares decreased by 5.3%, Advanced Micro Devices Inc. – by 5.3%, Adobe Inc. – by 5.1%, Apple Inc. – by 2.3%.


The Dow Jones Industrial Average index fell by 526.47 points (1.47%) to 35241.59 points by the close of the market on Thursday.

The Standard & Poor's 500 declined by 83.1 points (1.81%) to 4504.08 points.

The Nasdaq Composite lost 304.73 points (2.1%) to 14,185.64 points.


Analysts expect that high volatility in the stock market will continue until the March Fed meeting, at which the key rate is likely to be increased.


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