October's consumer price index (CPI) reading proved dire, jumping 6.2% year-over-year for its largest annual increase since 1990. In response, investors moved to hedge against inflation, triggering a spike in bond yields and sending the major indexes lower for the day. Rising treasury yields pushed investors away from tech names, dragging the Nasdaq down triple digits for its worst daily performance since Oct. 4. Meanwhile, the Dow took a 240 point haircut, and the S&P 500 finishing deep in the red, with the latter also securing its worst daily outing since Oct. 4.
The Dow Jones Average (DJI - 36,079.94) fell 240 points or 0.7% for the day. Merck (MRK) led the list of Dow winners today, tacking on 1.6%, while Salesforce.com (CRM) fell 3.2% to pace the laggards.
The S&P 500 Index (SPX - 4,646.71) shed 38.5 points, or 0.8% for the day, while the Nasdaq Composite (IXIC - 15,622.71) dropped 263.8 points, or 1.7% for the day.
Lastly, the CBOE Market Volatility Index (VIX - 18.73) added 1 point or 5.3% for the day.
OIL PRICES SLIP ON U.S. CRUDE STOCK UPDATE
Oil prices are in a "wait and see mode," according to one UBS analyst, creeping lower today, snapping its three-day win streak. This comes after an industry report implied that stocks of black gold had tightened and the Energy Information Administration (EIA) reported a sharp weekly rise in inventory. In response, December-dated crude shed $2.81, or 3.3% to settle at $81.34 a barrel.
Meanwhile gold jumped to its highest close since June on the heels of heightened inflation data. Brushing off a strengthening dollar, December-dated gold added $17.50 or, 1%, to settle at $1,848.30 on the day.
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