Dow hit with 682 point loss, Nasdaq off 2.7% on inflation beating

10-year yield rose 7 basis points to 1.69%

U.S. equity markets were pummeled Wednesday as traders digested a hotter-than-expected read on consumer prices and a spike in bond yields. 

The Dow Jones Industrial Average fell 682 points, or 1.99%, while the S&P 500 and the Nasdaq Composite were lower by 2.15% and 2.67%, respectively. The selling came as the 10-year yield spiked 7 basis points to a five-week high of 1.69% as data showed a big jump in inflation. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 33367.35 -456.10 -1.35%
SP500 S&P 500 4182.32 -39.54 -0.94%
I:COMP NASDAQ COMPOSITE INDEX 14084.79701 -76.55 -0.54%

Consumer prices in April rose 0.8% for the month and 4.2% year over year, making for the biggest annual increase since September 2008. Both exceeded economists' expectations. The report caused investors to assess the possibility that the Federal Reserve may have to alter its asset purchase plan and course for interest rates.

In stocks, Tesla Inc. exported 55% of the 25,845 vehicles made at its Shanghai plant in April, according to figures released Wednesday by the China Passenger Car Association. 

Ticker Security Last Change Change %
TSLA TESLA, INC. 616.08 -0.52 -0.08%
AAPL APPLE, INC. 131.03 -0.77 -0.58%
MSFT MICROSOFT CORP. 261.60 +0.70 +0.27%

Meanwhile, mega-cap tech stocks including Apple Inc. and Microsoft Corp. remained in focus as investors continued to rotate out of growth stocks and into value plays. 

A Centers for Disease Control and Prevention panel on Wednesday will consider Pfizer Inc. and BioNTech SE’s COVID-19 vaccine for use in adolescents. 

Ticker Security Last Change Change %
PFE PFIZER INC. 38.92 -0.53 -1.34%
BNTX BIONTECH SE 216.25 +2.05 +0.96%

In earnings, Wendy’s Co. reported strong same-store sales and hiked its full-year earnings forecast due to increased optimism its breakfast menu, announced just before lockdowns went into effect last year, will bring customers into restaurants.  

Ticker Security Last Change Change %
WEN WENDY'S 23.16 -0.34 -1.45%

In other food news, Dominos Pizza bucked the selling posting marginal gains after hedge fund investor Bill Ackman disclosed he took a 6% stake in the chain. 

Ticker Security Last Change Change %
DPZ DOMINO'S PIZZA, INC. 454.70 -2.69 -0.59%

In commodities, West Texas Intermediate crude oil jumped 80 cents to $66.08 per barrel and gold slid $13.30 to $1,822.60 an ounce. 

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Overseas markets were mostly higher.

Britain’s FTSE 100 was out in front in Europe, advancing 0.82%, while Germany’s DAX 30 and France’s CAC 40 ticked up 0.2% and 0.19%, respectively. 

In Asia, Japan’s Nikkei 225 lost 1.61%, China’s Shanghai Composite rose 0.61% and Hong Kong’s Hang Seng index gained 0.78%.