Stocks retreated Wednesday after October’s consumer price reading showing the biggest annual jump in more than 30 years, triggering a spike in bond yields.
The Dow Jones Industrials took a header, losing 240.04 points, to close Wednesday at 36,079.94.
The S&P 500 stumbled 38.54 points to 4,646.71.
The NASDAQ Composite staggered 263.84 points, or 1.7%, to 15,622.71.
Technology shares were under pressure Wednesday as rising rates discount the value of future earnings and therefore can hit growth stocks particularly hard. Advanced Micro Devices pulled back 6.1%, Nvidia retreated 3.9% and Google-parent Alphabet dipped 2%.
Meanwhile, bank stocks got a lift from the jump in bond yields, capping losses for the overall market. Higher rates mean banks charge greater interest on loans, which typically boosts profits. Bank of America ticked up 0.8% and Wells Fargo gained 0.9%.
The consumer price index jumped 6.2% from a year ago, well above the 5.9% estimate from economists polled by Dow Jones and the largest annual increase since 1990. On a monthly basis, the CPI increased 0.9% against the 0.6% estimate. The CPI is a basket of products ranging from gasoline and health care to groceries and rents.
Prices for 10-year Treasurys tumbled raising yields to 1.57% from Tuesday’s 1.44%. Treasury prices and yields move in opposite directions.
Oil prices dropped $2.89 to $81.26 U.S. a barrel.
Gold prices gained $22.90 to $1,853.70 U.S. an ounce.