Dow Dives Over 800 Points as Red-Hot Inflation Puts Fed on Aggressive Track
Wall Street’s main stock indexes plunged intraday on Sept. 13 after government data showed inflation coming in hotter than expected, putting investors on edge as the price data suggest the Federal Reserve will remain on a hawkish tilt and keep tightening aggressively.
The annual inflation rate, as measured by the Consumer Price Index (CPI), clocked in at 8.3 percent in August, according to the Bureau of Labor Statistics (BLS).
While the pace of inflation was lower than July’s figure of 8.5 percent, it was above market predictions of 8.1 percent.
Stocks dove following the release of the red-hot inflation data. The Dow Jones Industrial Average, for example, lost 869 points, or 2.7 percent, to 31,512, as of 11:35 a.m. Eastern Standard Time. The Nasdaq composite dropped 542 points, or 4.3 percent, to 12,198 points. The benchmark S&P 500 Index fell 127 points, or 3.1 percent, to 3,984….