New York, May 12 (EFE) .- Wall Street succumbed on Wednesday to fear of the rise in inflation in the US and its main indicator, the Dow Jones of Industrialists, fell a remarkable 1.99% in the middle of some intense sales in the last minutes.
At the close of the session on the New York Stock Exchange, the Dow Jones cut 681.50 units, to 33,587.66, and the selective S&P 500 fell 2.14% or 89.06 points, to 4,063.04.
The Nasdaq Composite Index, which groups together several high-valuation tech companies, took the biggest hit, with a sharp loss of 2.67% or 357.74 points to 13,031.68.
Almost all sectors ended in the red, with the largest loss for non-essential goods (-3.28%), technology (-2.86%) and basic materials (-2.56%) companies. Energy companies rose 0.06%.
The New York stock market experienced its third consecutive loss, and the worst since January for the Dow Jones, in reaction to consumer price data in April, which showed a faster and stronger increase in inflation than expected.
The consumer price index (CPI) in the United States rose 0.8% in April and has placed year-on-year inflation at 4.2%, the highest increase since 2008, as reported today by the Bureau of Labor Statistics (BEA ).
Fed Vice President Richard Clarida today expressed his surprise at the data, but reiterated the message that he has maintained in recent weeks: that there will be notable price increases but they will be transitory and that no change in interest rates is expected in the remainder of the year.
However, investors fear that the central bank will initiate earlier than expected the withdrawal of the extraordinary monetary stimuli arranged to support the exit from the economic crisis of COVID-19.
The data generated strong movements in the debt market, raising the yield of the US 10-year Treasury bond to 1,695% at the close of the session, when volatility soared.
The Vix index, known as the “indicator of fear” and which measures volatility in the market, rose 27% in the last part of the day, when there were massive sales of shares.
Among the 30 listed companies of the Dow Jones, the falls of Home Depot (-4.20%), Honeywell (-3.98%), Boeing (-3.60%) and Microsoft (-2.94%) stood out.
Only Merck (known as MSD outside the US and Canada) closed in green with a 0.64% advance and Chevron, 0.63%.
In other markets, Texas oil rose to 66.08 dollars a barrel, gold fell to 1,819.80 dollars an ounce and the dollar strengthened against the euro, with a change of 1.2073.
(c) EFE Agency