Wall Street’s main stock indexes plunged 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 lost 1,276 points, or 3.94 percent on Tuesday, its worst day since June 2020. The Nasdaq composite dropped 632 points, or 5.16 percent and the benchmark S&P 500 Index fell 177 points, or 4.32 percent….