Stocks were mixed Thursday as Wall Street responded to news that consumer price inflation last month accelerated to the fastest pace in three decades.
The Dow Jones Industrial Average fell 137 points, or 0.38%, to 35,946, while the S&P 500 advanced 0.15% and the Nasdaq climbed 0.61%.
Stocks have been on a two-day losing streak after posting eight consecutive all-time highs.
Tech stocks in particular were battered in the previous session by rising bond yields. The bond market is closed Thursday for Veterans Day.
On Wednesday, the Bureau of Labor Statistics said the consumer price index marked a 0.9% increase in October, indicating a 6.2% year-over-year increase, the fastest since 1990 and exceeding analyst estimates of 5.9%.
“The latest CPI numbers surprised to the upside, creating more headaches for the Fed on how, and when, to respond.” said LPL Financial Chief Market Strategist Ryan Detrick.
“It’s looking more and more likely that ‘sticky’ rent inflation, increasing strength in the labor market, continuing supply chain disruptions, and increasing consumer demand could now push the Fed’s ‘transitory’ time frame well into 2022.”
In company news, Disney shares fell after the entertainment and media icon posted weaker-than-expected fourth-quarter earnings and disappointing additions to its Disney+ streaming service.
Tesla was off slightly after Securities and Exchange Commission filings showed Founder and Chief Executive Elon Musk has sold around $5 billion in shares of the electric vehicle maker over the past few days.
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Paysafe shares tumbled after the online payment processing platform backed by Blackstone Group and CVC Capital Partners posted weaker-than-expected third quarter revenues and lowered its full-year profit forecasts.
Beyond Meat sank after the plant-based-food producer posted disappointing third-quarter earnings and a tepid sales outlook.
Honest Co. , the household and wellness company founded by Jessica Alba, gained after posting third-quarter earnings that fell short of forecasts but sales that beat Wall Street estimates.
Rivian Automotive continued to climb following its Nasdaq debut for biggest IPO of the year and lifted the value of the electric-car maker to more than $100 billion.
This article was originally published by TheStreet.