US Stocks Plummet
US stocks fell sharply due to high inflation and rising US-Iran tensions, with the Nasdaq losing nearly 2% and the Dow Jones Industrial Average plunging 953.21 points.
Key points
- The US Consumer Price Index (CPI) surged to 4.2 percent, its highest level in 3 years.
- The CPI increased 0.5 percent on a seasonally adjusted basis in May, after rising 0.6 percent in April.
- The Dow Jones Industrial Average suffered its worst session in weeks, losing 953.21 points.
- Hostilities between Iran and the US have escalated, with President Donald Trump threatening to hit Iran hard again.
- Analysts say the Iran war story is consequential and could lead to higher oil prices if not resolved.
The latest CPI reading showed inflation in the US has surged to 4.2 percent, its highest level in 3 years. This, combined with rising tensions between the US and Iran, led to a risk-off mood in global equity markets. The Dow Jones Industrial Average plunged 953.21 points, while the Nasdaq lost nearly 2 percent. The CPI increase was driven by a 0.5 percent seasonally adjusted increase in May, following a 0.6 percent rise in April. The US-Iran conflict has added to market woes, with President Donald Trump threatening to take action against Iran. Analysts believe the situation could lead to higher oil prices if not resolved.
Sources
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