NEW YORK, New York – U.S. stocks closed sharply lower Tuesday, the third straight day of losses.
Investors continue to fret about inflation with forecasts that the CPI in the UK will hit 22 percent this year. High inflation means central banks will push interest rates higher.
“The markets are fragile, and the hawkish reception by the Fed Friday shows they’re trying to be crystal clear that the Fed pivot is not in the cards, and they’re going to continue to have inflation as their number one priority,” Stephanie Lang, Chief Investment Officer of Homrich Berg told CNBC Tuesday. “That narrative is going to continue to put pressure on the market. We’re just going to have a lot of volatility into year-end,” she said.
Technology stocks again took the brunt of the damage percentage-wise, with the Nasdaq Composite shedding 134.53 points, or 1.12 percent, to 11,883.14.
The Dow Jones industrials dived 308.12 points, or 0.96 percent, to 31,790.87.
The Standard and Poors 500 dropped 44.45 points, 1.10 percent, to 3,986.16.
The U.S. dollar shrugged off a sell-off in Asia to pick up steam in the European and U.S. sessions.
The euro, however, regained parity, albeit modestly, and held that gain by the New York close. The EU unit last traded Tuesday at 1.0018. The British pound, after hurdling the 1.1700 level earlier in the day, buckled to finish around 1.1652. The Japanese yen weakened to 138.73.
The Canadian dollar fell sharply to 1.3099. The Australian dollar retreated to 0.6853. The New Zealand dollar dived to 0.6131. The Swiss franc weakened to 0.9737.
On overseas equity markets, the FTSE 100 in London slid 0.88 percent. The Paris-based CAC 40 fell 0.19 percent. Going against the trend, the German Dax rose 0.53 percent,
Stocks in Asia were mostly stronger on Tuesday.
In Japan, the Nikkei 225 gained 316.62 points, or 1.14 percent, to 28,195.58.
The Australian All Ordinaries advanced 37.00 points or 0.51 percent to 7,230.40.
In New Zealand, the S&P/NZX 50 surged 141.71 points or 1.23 percent to 11,648.65.
South Korea’s Kospi Composite added 24.04 points, or 0.99 percent, to 2,450.93.
In China, the Shanghai Composite dipped 13.51 points, or 0.42 percent, to 3,227.22.
The Hang Seng in Hong Kong fell 74.19 points, or 0.37 percent, to 19,949.03.