Photo: Getty Images
The stock market had its worst day since June 2020 on Tuesday (September 13) as stocks tanked across the board following a report showing inflation continued to rise in August. The Dow Jones Industrial Average ended the day by 1,276 points at 31,104. The Nasdaq Composite fell 5% to close at 11,633 points. The S&P 500 was down by 4.32% and closed the day at 3,932.
The sell-off ends a four-day winning streak on Wall Street.
The inflation report has concerned investors because it increases the chances that the Federal Reserve could increase interest rates by more than 75 basis points.
"It caught the market off guard," LPL Financial's Quincy Krosby told CNBC. "The market had been expecting at least that we had leveled off — perhaps not moving downward but certainly not climbing higher. It was the wrong direction, and the concern, of course, is always translated into what does this mean for the Fed."
Stock futures remained flat as investors wait for Wednesday's report containing the producer price index.