The US stock market just had its worst day of 2022. The fortunes of millions of Americans plummeted today after the market wiped out $1.6 trillion in just six and a half hours of trading. Tech stocks were hit particularly hard, with Apple and Microsoft down more than 4%, Meta Platforms down more than 7% and chip giant Nvidia down 9.5%.
It all started this morning after the August inflation report showed prices higher than expected, dampening hopes that the Federal Reserve would not aggressively hike interest rates. Headline inflation rose 0.1%m/m and core inflation rose 0.6%m/m. Year-on-year inflation was 8.3%. As the market closes, the Dow plunges 1,200 points, making it the worst day since June 2020.
US CPI for August YoY came in at 8.3%, ahead of expectations (expected 8.1%) but down from July’s 8.5%.
MoM Core CPI is coming up hot
0.6% double the expected 0.3%.
Not what the Fed wants to see.
So it’s 75bps at the next meeting?
— Jan Wüstenfeld (@JanWues) September 13, 2022
The carnage didn’t stop at Apple and Microsoft. Almost all tech stocks were down. But Twitter shares rose 0.7% after a report that shareholders were poised to vote on Elon Musk’s $44 billion acquisition, which they are expected to approve.
When the dust settled, the Dow Jones Industrial Average lost 1,276.37 points, or 3.94%, to close at 31,104.97. The S&P 500 was down 4.32% to 3,932.69 and the Nasdaq Composite was down 5.16% to end the day at 11,633.57. Only five stocks in the S&P 500 ended in positive territory.
Obliteration is not limited to stocks. Bitcoin also lost $1,000 in 3 minutes as US CPI inflation overshoots target. The world’s most popular cryptocurrency is now trading at $20,197.90 after surpassing $23,000 just a few days ago.
The US stock market wiped out $1.6 trillion today pic.twitter.com/KzsFvXbMli
— Fintwit (@fintwit_news) September 13, 2022