US stocks traded lower on Thursday following investor reaction to inflation data that showed consumer prices rose at an unexpected pace year-over-year.
After an initial rebound in mid morning trades, the indexes slipped lower to see the Nasdaq Composite fall 1.6%. The sell-off also saw the S&P 500 shed earlier gains to clock -1.5% in early afternoon deals, while the Dow Jones Industrial Average was down close to 500 points, or 1.3% down.
Wall Street’s downturn came as data released Thursday showed consumer price index (CPI) jumped 7.5% to beat estimates of 7.3% and put the inflation pace at its fastest since 1982.
The data leaves the stock market even more concerned about just how aggressive the US Federal Reserve is going to be in its hawkish stance.
While the expectation of the first interest rate is priced in for March, the jitters are increasing on the possibility of an even tighter Fed. The probable scenario is likely to see the Fed go for more than four hikes in 2022.
Big Tech sell-off again
Among stocks to see most pain on Thursday were big tech companies. Microsoft shares had the biggest dip at 2.77% while Apple Inc was down 1.72%, Amazon had slid 1.6%, and Google parent Alphabet had shrunk 1.7%.
Shares of social media giant Meta Platforms, which recently recorded its biggest single-day market value loss, were down 1.1%.
Lumen Technology and Motorola Solutions were among the biggest losers in the S&P 500 with -14% and -6% respectively.
Bitcoin jumps above $45k
The price of Bitcoin rose above the $45k level to set an intraday high of $45,693. The upside followed an earlier dip alongside stocks, before a surge in the equities market also saw the BTC/USD pair climb.
Bitcoin currently trades around $45,150, about 2.4% up on the day and nearly 20% higher over the weekly chart.
Elsewhere in the market, the 10-year US Treasury yield rose to 2.01%, increasing by 9 basis points to add to the negative outlook for equities.
Gold prices were unchanged at $1,836 per ounce, while Silver was slightly higher at $23.46.
Oil was priced around $89.60, about 0.1% lower.