Wall Street, the Dow Jones and S&P 500 indexes fell yesterday, dragged down by financial stocks, after data showing a slower-than-expected rise in US inflation led to uncertainty over the US Federal Reserve’s time-line to taper monetary stimulus.
Data from the Labor Department showed underlying consumer prices rose at their slowest pace in six months in August, suggesting that inflation had probably peaked.
The consumer price index, excluding the volatile food and energy components, edged up 0.1 percent last month.
That was the smallest gain since February and followed a 0.3 percent rise in July.
So, the Dow Jones Industrial Average fell dropped 292 points, or 0.8 percent, to close at 34,578.
The S&P 500 lost 26 points, or 0.6 percent, to end at 4,443. The Nasdaq Composite shed 68 points, to 15,038.
Investors are focusing on the potential passage of US President Joe Biden’s 3.5 trillion dollars budget package, which is expected to include a proposed corporate tax rate hike to 26.5%, from 21%.