S&P 500 and Nasdaq Composite book worst day in over 5 weeks as 30-year government bond yield surges

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U.S. stocks skidded lower Wednesday, as a reading of consumer inflation rose in October to the highest level since 1990, at least partly driven by supply-chain disruptions in the wake of the COVID-19 pandmeic and strong consumer demand. The Nasdaq Composite Index fell 1.7% to 15,623, marking the sharpest one-day decline since Oct. 4 when the technology-laden index fell more than 2%. The S&P 500 index finished down 0.8% to 4,646, also representing the worst day since early October when it fell 1.3%. The Dow Jones Industrial Average closed down 240 points, or 0.7%, at 36,080. The consumer-price index rose 0.9% in October, compared with economists’ expectations for a rise of 0.6%. The core reading, which excludes volatile food and energy prices, rose 0.6% versus expectations for a 0.4% rise. Year over year, CPI rose 6.2%, a nearly 31-year high and more than triple the Federal Reserve’s 2% target. In corporate news,Rivian Automotive Inc. made its debut on the Nasdaq Inc., surging nearly 30%. Moves in stocks were already tilting lower but losses accelerated after a weak auction of 30-year Treasury pushed the yield of the long bond up by the most since March 12, Dow Jones Market Data showed.

-Mark Decambre

 

(END) Dow Jones Newswires

11-10-21 1608ET

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