US market biggest fall since June 2020! What triggered downfall in Dow Jones, S&P 500 and Nasdaq
US market crash: In the biggest fall since June 2020, the US market plummeted on Tuesday on higher-than-expected inflation figures.
In the biggest fall since June 2020, the US market plummeted on Tuesday on higher-than-expected inflation figures. Reacting to the inflation data, Wall Street benchmark indices tanked around 4-5%.
Dow Jones fell 3.9% (1276 points), Nasdaq tanked 5.1% (632 points) and S&P 500 dropped by 4.3% (177 points) in the closing trade on Tuesday.
The sharp fall in the US indices comes in the backdrop that it gives away any hope of mild rate hike by the US Federal Reserve in its meeting later this nonth
In August, the Consumer Price Index for All Urban Consumers increased 0.1 percent and rose 8.3 percent over the last 12 months. From 8.5% in July, the inflation figures, however, eased on a month-on-month basis.
Reacting to it, SGX Nifty dropped around 300 points to trade around 17,800 in early trade on the Singaporean exchange on Wednesday.
"The 4.32% and 5.12% cut in S&P 500 and Nasdaq on Tuesday again reminds us that there is more uncertainty about inflation and growth and more volatility ahead for markets," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services on the US market slump.
The worse-than-expected CPI inflation data in the US, despite cooling gas prices, was a surprise, he said.
"Now the market fears that inflation is getting entrenched and an ultra-hawkish Fed might trigger a hard landing for the US economy. This thinking too, might change when new data emerges," he added.
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