U.S. stocks tumbled Wednesday after the latest reading on inflation showed consumer prices accelerated by the most in 31 years.
The Dow Jones Industrial Average fell 240 points, or 0.66%, while the S&P 500 index and the Nasdaq Composite index declined 0.82% and 1.66%, respectively. The selling caused all three of the major averages to post a second day of losses after closing at record highs on Monday.
|I:DJI||DOW JONES AVERAGES||35735.1||+508.07||+1.44%|
|I:COMP||NASDAQ COMPOSITE INDEX||15686.769314||+461.62||+3.03%|
Consumer prices climbed 6.2% year over year in October and rose 0.9% from the prior month. Analysts were expecting a 0.6% jump in October.
Following the report, the yield on the 10-year note jumped higher by 11 basis points to 1.56%. The catalyst for the surge was a weak 30-year bond auction that occurred in the wake of the CPI report.
In stocks, Rivian Automotive Inc. shares surged 28% in their stock market debut. The electric-vehicle maker opened for trading at $106.75 per share after pricing at its initial public offering at $78. The $11.9 billion that was raised made Rivian's initial public offering the largest since Facebook’s 2012 market debut.
|RIVN||RIVIAN AUTOMOTIVE INC.||115.92||-0.86||-0.74%|
DoorDash Inc. agreed to acquire international delivery platform Wolt in an $8.1 billion deal. The company reported a wider-than-expected quarterly loss, but revenue that topped estimates.
Coinbase Global Inc. reported weaker-than-expected quarter sales as trading volume fell and the number of monthly transacting users declined.
|COIN||COINBASE GLOBAL, INC.||287.86||+24.61||+9.35%|
Wynn Resorts CEO Matt Maddox said he is leaving the company effective Jan. 31. Maddox, who took the helm following founder Steve Wynn’s resignation in 2018, will be replaced by Wynn Interactive CEO Craig Billings. Both top and bottom line numbers exceeded analysts’ expectations.
|WYNN||WYNN RESORTS LTD.||87.89||+2.98||+3.51%|
Krispy Kreme Inc. beat on both the top and bottom lines as price increases helped offset rising labor and commodities costs. The company, which hiked prices in September, is planning another increase during the current quarter.
Walt Disney Co., Bumble Inc. and Beyond Meat Inc. are among the companies scheduled to report their quarterly results following the closing bell.
|DIS||THE WALT DISNEY CO.||150.99||+0.62||+0.41%|
|BYND||BEYOND MEAT, INC.||72.58||+5.24||+7.78%|
In commodities, West Texas Intermediate crude oil slid $2.81 to $81.34 a barrel and gold spiked $17.40 to $1,847.60 an ounce.
Overseas markets were mixed.
In Europe, France’s CAC 40 ticked up 0.03%, Germany’s DAX 30 rose 0.17% and Britain’s FTSE 100 climbed 0.91%.
Asian trading was choppy with Hong Kong’s Hang Seng index climbing 0.74%, China’s Shanghai Composite index falling 0.42% and Japan’s Nikkei 225 losing 0.61%.