US opens lower on higher than expected inflation data

Wednesday, 12. May 2021 15:31

Major equity markets in the United States opened lower on Wednesday after key inflation data revealed a jump of 4.2% year-on-year, much higher than the estimated 3.6%. The Consumer Price Index (CPI) for all items in the US accelerated at its fastest pace since 2008. The monthly growth landed at 0.8%, compared to the forecasted 0.2%.

US Federal Reserve officials warned that the increased inflation would be transitory, while Fed's Vice Chairman Richard Clarida noted the inflation would likely rise further before moderating later in 2021, but it is expected to return to the targeted 2% over the next two years. Meanwhile, tech shares extended their fall from the previous session, despite Nasdaq 100 bouncing back shortly before closing in the red.

The Dow lost 0.42% at the opening bell as Apple slid by 1.18%, while the S&P 500 fell by 0.71% and the Nasdaq 100 plunged by 1.52%, both led by Lam Research dropping by 3.01%. The euro declined by 0.43% against the dollar trading for $1.20932 at 9:29 am ET.

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Breaking the News / LH