by Caroline Valetkevitch
NEW YORK, May 11 (Reuters) – The New York Stock Exchange ended sharply lower on Wednesday after the release of consumer price data in the United States fueled investor fears about inflation and interest rate hikes that the Federal Reserve (Fed) could make in response.
The Dow Jones index fell 1.02%, or 326.63 points, to 31,834.11 points.
The broader S&P-500 lost 65.87 points, or 1.65%, to 3,935.18 points.
The Nasdaq Composite fell for its part by 373.44 points (3.18%) to 11,364.24 points.
The S&P-500 is now down 18% from its closing record on January 3. The Dow Jones recorded its fifth consecutive session in the red, an unprecedented series since mid-February.
According to the monthly report from the US Department of Labor, inflation may have peaked in April but should remain high enough to force the Fed to tighten monetary policy further.
Consumer prices rose last month by 0.3%, the weakest since last August but a rate higher than the consensus which came out at +0.2%.
“There hasn’t been a surprise positive enough to support the market,” said Quincy Krosby, chief strategist at LPL Financial in Charlotte, North Carolina.
“The market is still trying to figure out if the Fed is going to be able to get inflation under control quickly,” he added.
While high-growth stocks are sensitive to the prospect of higher interest rates, the S&P-500 technology sector ended in the red.
Apple particularly weighed on the Nasdaq and the S&P-500, falling 5.2%.
Stocks in the energy sector surged and helped limit the decline in the S&P-500 and the Dow Jones.
Investors’ attention will turn on Thursday to new inflation data, with the publication of producer prices in the United States.
On the stock side, Coinbase Global plunged 26.4% following the publication of quarterly results below expectations amid a rout in the stock markets which fueled investor risk aversion.
* TO BE FOLLOWED ON THURSDAY:
(French version Jean Terzian)