Nasdaq Tumbles 1.88 Percent as Inflation Data Rattles Wall Street
The Nasdaq Composite dropped 1.88%, or 511.51 points, to finish at 26,692.87. The S&P 500 shed 1.11%, or 86.51 points, to settle at 7,718.94. The Dow Jones Industrial Average slipped a more modest 48.62 points, or 0.09%, to end at 51,621.48.
Anxiety spiked as the Volatility Index (VIX), often referred to as the market’s “fear index,” rose 10.48% to 16.87.
Inflation Data Overshoots
Annual inflation reached 3.7% in September, above estimates. Monthly inflation was 0.6%, matching expectations. The monthly figure was the highest in five months, and the annual rate was a four-month high.
Gasoline was the main driver. The gasoline price index jumped 9.1% from August, accounting for more than half of the monthly increase.
Treasury Yields and Dollar Surge
The 10-year US Treasury yield climbed 11 basis points to 5.33% after the release, then steadied near 5.2%. The 30-year Treasury yield touched 5.63% during the session before easing to 5.52%.
The US dollar index gained 0.7% to 102.94, its highest level of the year.
European Markets Close Mostly Higher
European shares finished mostly in positive territory, with the UK’s FTSE 100 the exception. The pan-European Stoxx Europe 600 rose 0.43% to 637.75 points.
The FTSE 100 fell 0.7% to 10,724.86. Germany’s DAX 40 edged up 0.15% to 25,298.61, and France’s CAC 40 gained 0.58% to 7,873.11. Italy’s FTSE MIB 30 advanced 0.61% to 49,753.84, while Spain’s IBEX 35 added 0.1% to close at 19,230.70.
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