{"id":247737,"date":"2021-05-12T16:50:00","date_gmt":"2021-05-12T13:50:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/dow-slides-after-inflation-climbs-to-highest-in-13-years\/"},"modified":"2021-05-12T16:50:00","modified_gmt":"2021-05-12T13:50:00","slug":"dow-slides-after-inflation-climbs-to-highest-in-13-years","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/dow-slides-after-inflation-climbs-to-highest-in-13-years\/","title":{"rendered":"#\n  Dow slides after inflation climbs to highest in 13 years"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3667d373b05\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3667d373b05\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/dow-slides-after-inflation-climbs-to-highest-in-13-years\/#What_are_major_indexes_doing\" >What are major indexes doing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/dow-slides-after-inflation-climbs-to-highest-in-13-years\/#Whats_driving_the_market\" >What\u2019s driving the market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/dow-slides-after-inflation-climbs-to-highest-in-13-years\/#Which_companies_are_in_focus\" >Which companies are in focus?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/dow-slides-after-inflation-climbs-to-highest-in-13-years\/#How_are_other_assets_faring\" >How are other assets faring?<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/dow-slides-after-inflation-climbs-to-highest-in-13-years\/#William_Watts\" >William Watts<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Dow slides after inflation climbs to highest in 13 years<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\">\n<\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000265916\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       U.S. stock indexes opened lower Wednesday morning, after a reading on inflation for the year to April climbed 4.2%, marking the highest rate in about 13 years, reigniting fears that the Federal Reserve may need to dial back its easy money policies earlier than expected.  <\/p>\n<p> Trading on Wednesday comes after the Dow Jones Industrial Average suffered its biggest one-day fall since late February.<\/p>\n<div class=\"paywall\">\n<h6><span class=\"ez-toc-section\" id=\"What_are_major_indexes_doing\"><\/span>What are major indexes doing?<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<ul class=\"articleList\">\n<li>\n      The Dow Jones Industrial Average were down 108 points, or 0.3%, at around 34,157.<\/p>\n<\/li>\n<li>\n      The S&amp;P 500 index fell 23 points, or 0.6%, to 4,129.<\/p>\n<\/li>\n<li>\n      The Nasdaq Composite Index dropped 136 points, or 1%, to about 13,250.<\/p>\n<\/li>\n<\/ul>\n<p>On Tuesday, the Nasdaq Composite<br \/>\n        COMP,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598365\/realtime\" class=\"negative\">-1.23%<\/bg-quote><br \/>\n       bounced back from an intraday fall of more than 2% to end slightly lower as tech shares bounced back from an initial rout. But the broader market struggled to recover, with the Dow<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"negative\">-0.59%<\/bg-quote><br \/>\n       finishing 473.66 points lower, down 1.4%, for its biggest one-day percentage drop since Feb. 26. The S&amp;P 500<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.78%<\/bg-quote><br \/>\n       lost 0.9%.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Whats_driving_the_market\"><\/span>What\u2019s driving the market?<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Inflation jitters were percolating again after a report showed that U.S. inflation in the year to April rose at its fastest pace in about 13 years, amid the recovery from the COVID pandemic, data from the Labor Department showed. <\/p>\n<p>The consumer-price index rose 4.2% from a year ago, compared with average economists estimates surveyed by Econoday for a 3.6% increase. The month-over-month rise was 0.8%, versus a forecast for a rise of 0.2%.<\/p>\n<p>Overall, the rise was showed the fastest rate of climb since September 2008.<\/p>\n<p>Excluding volatile food and energy prices, the core reading increased 3% from the same period in 2020, compared with expectations for 2.3% for the year.<\/p>\n<p>\u201cWhile the surge in inflation over the past year was driven in part by base effects, given last year\u2019s economic lockdowns, we are seeing prices rise for all sorts of things, like lumber, auto parts, semiconductors, groceries and gasoline,\u201d wrote Nancy Davis, founder of Quadratic Capital Management and manager of the Quadratic Interest Rate Volatility and Inflation Hedge exchange-traded fund<br \/>\n        IVOL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/212340916\/composite\" class=\"negative\">-0.01%<\/bg-quote><span>.<\/span>\n      <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>\u201cI expect inflation data to remain elevated over the coming months, given the widespread reopening of the economy, shortages or delays in many manufactured goods and a dovish Federal Reserve that is willing to let inflation run above its 2% target,\u201d she said. <\/p>\n<p>Some analysts said that stock valuations have been elevated and that a pullback in stocks isn\u2019t abnormal. <\/p>\n<p>\u201cThe markets have been hovering around all times highs with a lot of the reopening trade already priced in,\u201d wrote Mike Loewengart, managing director, investment strategy at E-Trade Financial, in emailed comments on Wednesday. <\/p>\n<p>\u201cSo it\u2019s not out of the question that the outsized inflation read could bring us back down to earth a bit,\u201d the strategist wrote. <\/p>\n<p>\u201cKeep in mind the Fed has made it clear that it won\u2019t let inflation increases necessarily sway it from its easy money policies and further any jumps like this could be transitory. So is this a trend? That remains to be seen,\u201d he said. <\/p>\n<p>That said, Fed No. 2 Richard Clarida said that he was \u201csurprised\u201d by the April inflation data. In prepared remarks, however, he said indicated he was more worried about the health of the U.S. labor market than high inflation. <\/p>\n<p>\u201cThe near-term outlook for the labor market <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to be more uncertain than the outlook for activity,\u201d Clarida said, in remarks at the start of a discussion of the outlook with the National Association for Business Economics.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Which_companies_are_in_focus\"><\/span>Which companies are in focus?<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<ul class=\"articleList\">\n<li>\n      Shares of <strong>Electronic Arts Inc.<\/strong><br \/>\n        EA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/206954087\/composite\" class=\"negative\">-2.04%<\/bg-quote><br \/>\n       were down 0.7% after the video<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> publisher late Tuesday reported its quarterly results.<\/p>\n<\/li>\n<li>\n      <strong>Lemonade Inc. <\/strong><br \/>\n        LMND,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/219257798\/composite\" class=\"negative\">-13.83%<\/bg-quote><br \/>\n       shares were down 15% after the mobile-based insurance company beat on results but provided a lackluster outlook for the current quarter.<\/p>\n<\/li>\n<li>\n      Europe\u2019s second-highest court on Wednesday annulled a European Commission ruling that ordered online retailer <strong>Amazon.com Inc.<\/strong><br \/>\n        AMZN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210331248\/composite\" class=\"negative\">-0.98%<\/bg-quote><br \/>\n       to pay \u20ac250 million ($303.3 million) to Luxembourg, as part of an attempt to crack down on unfair tax breaks extended to big multinationals by European Union member states. Shares were down 0.3%. Shares of the company were down 1.1%.<\/p>\n<\/li>\n<li>\n      Shares of <strong>FuboTV Inc.<\/strong><br \/>\n        FUBO,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/201214080\/composite\" class=\"positive\">+14.49%<\/bg-quote><br \/>\n       jumped 13%, after the company boosted guidance and reported first-quarter results.<\/p>\n<\/li>\n<\/ul>\n<h6><span class=\"ez-toc-section\" id=\"How_are_other_assets_faring\"><\/span>How are other assets faring? <span class=\"ez-toc-section-end\"><\/span><\/h6>\n<ul class=\"articleList\">\n<li>\n      The yield on the 10-year U.S. Treasury note\u00a0TMUBMUSD10Y,\u00a0was up at 1.662%, from 1.623% on Tuesday. Yields and bond prices move in opposite directions.<\/p>\n<\/li>\n<li>\n      The ICE U.S. Dollar Index\u00a0DXY,\u00a0a measure of the currency against a basket of six major rivals, was up 0.3%, jumping after the CPI reading.<\/p>\n<\/li>\n<li>\n      Oil futures traded higher, with the U.S. benchmark\u00a0CL00\u00a0advancing 1.3% higher at $66.14 a barrel on the New York Mercantile Exchange Gold futures\u00a0GC00\u00a0edged lower, down less than 0.1% at $1,834.30 an ounce.<\/p>\n<\/li>\n<li>\n      European equities fell sharply, with the Stoxx Europe 600\u00a0SXXP\u00a0up 0.3% and London\u2019s FTSE 100\u00a0UKXpicking up 0.7%.<\/p>\n<\/li>\n<li>\n      Hong Kong\u2019s Hang Seng Index\u00a0HSI closed 0.8% higher, while the Shanghai Composite\u00a0SHCOMP climbed 0.6% and Japan\u2019s Nikkei 225\u00a0NIK sank 1.6%.<\/p>\n<\/li>\n<\/ul>\n<\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"William Watts\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"William_Watts\"><\/span>William Watts<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-740E-BC0673C0F4EF%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Dow slides after inflation climbs to highest in 13 years &#8221; U.S. stock indexes opened lower Wednesday morning, after a reading on inflation for the year to April climbed 4.2%, marking the highest rate in about 13 years, reigniting fears that the Federal Reserve may need to dial back its easy money policies earlier&#8230;<\/p>\n","protected":false},"author":1,"featured_media":203358,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-247737","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/247737","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=247737"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/247737\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/203358"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=247737"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=247737"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=247737"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}