Wall Street Down after Hitting Record High, US CPI Rose 5.4%

On Wednesday, July 14, Wall Street was down after hitting record highs. The freshly released U.S. consumer price index accelerated to 5.4%.

The sectors in Basic Materials, Consumer Services, and Financial led the stocks to lower.

At the close of the New York Stock Exchange, the Dow Jones Industrial Average, S&P 500, and NASDAQ Composite all declined 0.31%, 0.35%, and 0.38%, respectively.

The firms that led the losses of the benchmark Dow were Boeing Co, Caterpillar Inc, and Home Depot Inc. They all plummeted by 4.23%, 1.55%, and 1.46%, respectively.

Meanwhile, Visa Inc Class A, Microsoft Co, and Coca-Cola Co-led the index’s gains. They gained 1.92% to $242.35, 1.32% to $280.98, and 0.97% to $55.02, respectively.

In the S&P 500, the session’s losers were ConAgra Foods sinking 5.43% to $33.98, Hewlett Packard Enterprise falling 4.91% to $13.76, and Franklin Resources tumbling 4.89% to $30.70.

On the other hand, the gainers include PepsiCo, which climbed 2.31% to $152.96. Mastercard rose 2.13% to $383.71. Visa was up by 1.92%, or $242.35.

Furthermore, SGOCO Group Ltd, Mediaco Holding Inc, and Transcode Therapeutics Inc led Nasdaq Composite’s fall by 52.25%, 50.82%, and 28.99%, respectively.

Its best performers were Allied Healthcare Products which rallied 128.79%, Red Cat Holdings Inc which spiked 60.27%, and Orbsat Corp, which progressed 40.33%.

In the Nasdaq Stock Exchange, falling stocks outnumbered the ones advancing by 2696 and 790, while 139 were unchanged.

The same happened on the New York Stock Exchange, where 2438 fell, and 751 advanced while 106 remained.

Inflation Surged

The inflation rate surged as the recently released U.S. consumer price index in June spiked 5.4% year on year, the largest since August 2008.

Due to this, the yield on the U.S. Treasury initially fluctuated. However, a weak Treasury auction sparked a 4.7 basis point rally in the benchmark 10-year note to 1.41%.

This was after its initial downfall to 1.343% following the release of the CPI figures.

The rise in inflation followed a 5.0% jump in the 12 months in May while the consumer price index climbed 0.9% month on month.

This happened following its progress of 0.6% last May, which is again that distressed investors.

Furthermore, the $24 billion 30-year bonds got sold at a 2.0% yield. This is more than two basis points over the debts that are traded before the auction.

An analyst stated that the inflation surge is negative on the market, which had a rally since the lows last March 2020 when the pandemic ultimately kicked off.

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