US stocks slump after latest inflation data

Tech-linked shares slumped, leading the market lower on Wednesday as Wall Street stocks suffered another bruising round of losses following the latest report showing US consumer prices remain elevated.

The Nasdaq slid 3.2 percent to 11,364 behind big drops in Apple, Facebook-parent Meta and other tech names.

The Dow Jones lost 1.0 percent to finish at 31,834, while the S&P 500 dropped 1.7 percent to 3,935.

With stocks under pressure for much of 2022, markets had been looking to the morning’s consumer price report in hopes that easing inflation would lower pressure on the Federal Reserve to hike interest rates.

While the annual inflation slowed slightly in April, the month-over-month increase in prices exceeded expectations. Overall, prices are up 8.3 percent over the last 12 months.

Markets viewed the report as largely disappointing, setting the stage for more Fed tightening, said Art Hogan, strategist at National Securities.

“The growth trade led us lower,” said Hogan, who described Apple’s 5.2 percent slide to US$146.50 as a result of automatic “sell” orders triggered after shares slipped below US$150.

Other tech names with big losses included Meta, down 4.5 percent, Netflix, down 6.4 percent, and Tesla, down 8.3 percent.

An exception among tech companies was Electronic Arts, which surged 8.0 percent after reporting better-than-expected profits on higher net bookings and revenues tied to its video game business.

Coinbase Global plunged 26.4 percent after the cryptocurrency trading platform’s latest quarter saw a drop in trading volumes and users compared with the previous quarter.

Duke Realty jumped 7.8 percent after it rejected an unsolicited US$24 bid from Prologis to acquire the logistics-oriented real estate company, calling the bid “insufficient.” (AFP)