As traders processed a hotter-than-expected August core inflation print, the Dow Jones Industrial Average dropped on Wednesday.
The Dow dropped 125 points, or 0.35%, and began to plummet again. The Nasdaq Composite increased by 0.1% while the S&P 500 remained unchanged.
Compared to expectations of 0.2% and 4.3%, August’s core inflation print for the consumer price index climbed by 0.3% and 4.3%, respectively. The core figure is the statistic that Federal Reserve policymakers pay greater attention to because it gives a more accurate picture of long-term inflation trends.
In the meantime, the headline figures increased 0.6% last month and were up 3.7% from a year earlier. According to economists surveyed by Dow Jones, 0.6% and 3.6% growth were anticipated.
The senior economist of Dreyfus and Mellon, Vincent Reinhart, said that the data “interrupts the run of good news” and “makes it more difficult to talk a pleasant game about inflation.” For the outcomes of the upcoming FOMC meeting, it is irrelevant. They won’t do anything. They haven’t given any indication that they intend to act. Market participants do not anticipate any movement. They have slowed down the tightening process, which is why.
Source (CNBC)
