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Stocks slipped on Wednesday as investors digested the latest consumer inflation report in an attempt to understand the health of the broader economy.
The Dow Jones Industrial index plunged 681.21 points, or 1.7%, at 40,051.15.
The S&P 500 sagged 71.73 points, or 1.3%, to 5,423.79.
The NASDAQ faltered 132.47 points to 16,893.41.
UnitedHealth Group, Goldman Sachs and Amgen dragged the Dow lower.
The consumer price index report released Wednesday reflected a 0.2% increase in prices last month, with the annual inflation rate coming in at 2.5% — its lowest level since February 2021. The CPI was expected to increase 0.2% in the previous month and 2.6% from a year ago, according to the Dow Jones consensus estimate.
Month over month core CPI — which does not include volatile food and energy prices — came out slightly hotter-than-expected, however.
Investors are still betting on a widely anticipated interest rate cut at the Federal Reserve’s Sept. 17-18 meeting. Traders priced in an 85% chance that the Federal Open Market Committee will approve a 25-basis-point interest rate reduction.
The new data comes as investors grapple with seasonal headwinds. September has been the worst month for the S&P 500 over the last 10 years, averaging a loss of more than 1% during that time. The broad-market index has also posted a loss in September in the last four years.
Prices for the 10-year Treasury jumped, lowering yields to 3.63% from Tuesday’s 3.65%. Treasury prices and yields move in opposite directions.
Oil prices gained 63 cents to $66.38 U.S. a barrel.
Gold prices slipped $10.20 to $2,532.90.
