Stocks Suffer Biggest Drop in More Than Two Years on Inflation Fears
variety.comTodd Spangler NY Digital Editor Media and tech stocks across the board felt the pain Tuesday amid a market-wide selloff, fueled by a fresh indicator that higher-than-expected inflation is continuing to put a damper on economic growth.
The Dow Jones Industrial Average shed 1,276 points, down 3.94%, to close the session Tuesday at 31,104.97. The S&P 500 index dropped 4.32%, while the tech-centric Nasdaq Index sank 5.16%.
The drops represented the biggest declines for U.S. stocks since June 2020. The losses on Wall Street came after the U.S. Bureau of Labor Statistics released data for August 2022, showing that the Consumer Price Index for the month increased 8.3% year-over-year (down only slightly from 8.5% in July and from the four-decade-high 9.1% in June).
The jump in the CPI was despite a 10.6% drop in gas prices for the month, which failed to offset rising prices for rent, healthcare, food, and electricity and natural gas.
Read more on variety.com