Inflation worries are rattling Wall Street, pulling the Dow Jones Industrial Average more than 680 points lower and placing the major stock indexes on track for their worst week in more than six months.
FILE - In this Nov. 23, 2020 file photo, the New York Stock Exchange is seen in New York. Stocks are opening lower, Wednesday, May 12, 2021, on Wall Street and bond yields are rising as investors reacted to a worse-than-expected increase in inflation last month.
The selling came as investors reacted to a surprisingly big jump in inflation last month that stoked concerns that the economy may bounce back too fast from its pandemic-induced doldrums. “Inflation and interest rate jitters are hitting the market today, but for now the sell-off has been orderly,” said Cliff Hodge, chief investment officer for Cornerstone Wealth. “Letting some air out of these sky-high valuations is a positive going forward.”The S&P 500 lost 89.06 points, or 2.1%, to 4,063.04, its biggest one-day drop since late February.
Investors have been worrying that inflation could return after being absent for many years as the economy revs out of the recession brought on by the pandemic. Federal Reserve officials and other economists have said moderate inflation may actually be a good thing in a recovery.
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