Dow closes over 680 points lower after deficit report

Wednesday, 12. May 2021 22:02

Major stock markets in the United States closed lower on Wednesday as the country's budget deficit reached a record-high of $1.9 trillion between October and April. Federal Reserve Bank of Atlanta President Raphael Bostic said the nation should expect volatile trends in inflation due to the still ongoing COVID-19 pandemic-caused crisis. Meanwhile, the White House warned of "months and quarters" of higher inflation and price pressures.

The Dow Jones Industrial Average traded 1.99% or 682 points lower at the close as The Home Depot dropped by 4.13%. The Nasdaq 100 sank by 2.62%, with Applied Materials Inc. went down by 7.02%. The S&P 500 declined by 2.15% as Penn National Gaming Inc. slumped by 8.41%.

The euro lost 0.59% to the dollar to sell for $1.20750 at 3:57 pm ET.

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Breaking the News / JR