Inflation is through the roof! U.S. stocks plunge! What does it mean that THE US CONSUMER price index rose at the fastest year-over-year pace in nearly 31 years?

Spark Global Limited reports:

All three major U.S. stock indexes closed lower on Wednesday, led by technology stocks, after a report showed U.S. consumer prices rose at the fastest pace in nearly 31 years in October, indicating inflation pressures are still building. At the close, the Dow was down 0.66%, the S&P 500 was down 0.82% and the NASDAQ was down 1.66%.

Technology stocks led declines after THE U.S. consumer price index rose at its fastest pace in nearly 31 years in October

The latest data on Wednesday showed that THE US CONSUMER price index rose for the 17th straight month in October, rising 6.2% from a year earlier, beating expectations and recording the highest growth rate since December 1990. Month-on-month growth was 0.9%. Us core CPI also rose more than expected year-on-year and month-on-month in October. The data suggest companies have been raising prices for consumer goods and services amid supply bottlenecks and Labour shortages that have pushed up production costs. High inflation is seen as putting pressure on the Fed to taper faster or raise rates sooner. Rising inflation pushed long-term Treasury yields significantly higher, triggering a selloff in blue-chip tech stocks, with all six leading tech stocks closing lower.

Tesla’s Nemesis Rivian got off to a strong start on its first day of trading and Disney’s earnings missed expectations

Among individual stocks, Electric car maker Rivian, which investors see as Tesla’s biggest rival, got off to a flying start on Its Nasdaq debut on Wednesday, closing up 29% to give it a market value of $85.9 billion, roughly equal to traditional auto giant General Motors. Disney shares fell more than 4% in after-hours trading Wednesday after the entertainment giant reported earnings that missed expectations and disappointed investors with slowing growth in its streaming business. It is worth mentioning that China ushered in the “Double 11” e-commerce activity sales peak today, most of the popular Chinese stocks rose, the three major e-commerce alibaba, JINGdong and Pinduoduo all bucked the market and ended up.

All three major European markets closed higher

In Europe, data on Wednesday showed inflation in Germany, the euro zone’s largest economy, rose to 4.5 percent in October, the highest since August 1993. But all three major European markets ended the day in positive territory, helped by a number of bright earnings reports. At the close, UK stocks were up 0.91%, French stocks were up 0.03% and German stocks were up 0.17%.

International oil prices have dropped significantly

In the oil market, data from the U.S. Energy Information Administration showing a 1 million barrel month-on-month rise in U.S. commercial crude inventories last week and a significant rise in the U.S. dollar index weighed on international oil prices. By the close, New York light crude for December delivery was down 3.34% at $81.34 a barrel. London Brent crude for January delivery closed down 2.52% at $82.64 a barrel.

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