The U.S. stock market wiped out $1.6 trillion in just 6.5 hours of trading
The US stock market just had its worst day of 2022. The wealth of millions of Americans took a nosedive today after the market wiped out $1.6 trillion in just six and a half hours of trading. Tech stocks were particularly hit hard, with Apple and Microsoft losing more 4%, Meta Platforms down more than 7%, and chip giant Nvidia shed 9.5%.
It all started this morning after August’s inflation report showed prices higher than expected, which dampens the hopes the Federal Reserve would not be aggressive in raising the interest rates. Headline inflation rose 0.1% month over month and core inflation rose 0.6% month over month. On a year-over-year basis, inflation was 8.3%. At the close of the market, Dow tumbles 1,200 points, making it the worst day since June 2020.
US CPI for August YoY coming in above expectations at 8.3% (expected 8.1%) but lower than in July with 8.5%.
MoM core CPI coming in hot at
0.6% twice as high as the expected 0.3%.
Not what the Fed wants to see.
So 75bps it is at the next meeting?
— Jan Wüstenfeld (@JanWues) September 13, 2022
The carnage did not stop with Apple and Microsft. Almost all technology stocks were in the red. But Twitter shares ticked higher by 0.7% after a report that shareholders prepared to vote on Elon Musk’s $44 billion takeover, which they are expected to approve.
When all the dust settled, the Dow Jones Industrial Average lost 1,276.37 points, or 3.94%, to close at 31,104.97. The S&P 500 dropped 4.32% to 3,932.69, and the Nasdaq Composite sank 5.16% to end the day at 11,633.57. Only five stocks in the S&P 500 finished in positive territory.
The wipe-out is not limited to stocks. Bitcoin also shed $1K in 3 minutes as US CPI inflation overshoots. The world’s most popular cryptocurrency is now trading at $20,197.90 after crossing the $23,000 mark just a few days ago.
The U.S. stock market wiped out $1.6 trillion today pic.twitter.com/KzsFvXbMli
— Fintwit (@fintwit_news) September 13, 2022