Wall Street opens lower after October inflation print exceeds forecasts
Wall Street's main indexes opened lower on Tuesday after hotter-than-expected US inflation data for October threatened to halt a tech-led rebound. The Dow, S&P 500 and Nasdaq all fell at the opening bell, with the Nasdaq dropping 0.81 per cent.
Wall Street's main indexes opened lower on Tuesday after hotter-than-expected inflation data for October threatened to pause a two-day rebound in tech shares and revive the selling pressure that had rattled markets last week, according to Reuters.
The Dow Jones Industrial Average fell 226.5 points, or 0.43 per cent, at the open to 52,163.21. The S&P 500 fell 36.8 points, or 0.49 per cent, at the open to 7,513.09, while the Nasdaq Composite dropped 205.7 points, or 0.81 per cent, to 25,047.448.
The inflation print, which came in above expectations, appeared to dampen investor sentiment after a two-day rally in technology stocks had lifted markets. The data revived concerns that the Federal Reserve may need to maintain higher interest rates for longer, a factor that has weighed on equity valuations in recent months.
Markets had been rattled by selling pressure last week, and the latest figures threatened to extend that volatility. Analysts noted that the hotter-than-expected inflation reading could delay any pivot by the central bank toward rate cuts, keeping borrowing costs elevated.
The declines were broad-based, with the technology-heavy Nasdaq suffering the steepest percentage drop. The S&P 500, which tracks a wider range of industries, fell nearly half a percentage point, while the blue-chip Dow also posted a significant decline.
Trading volumes were expected to remain elevated as investors digested the implications of the data for the outlook on monetary policy and corporate earnings.