US Market tumbles on inflation woes

The US stock market finished session steep lower on Wednesday, 10 November 2021, as investors continued profit booking amid raising concerns that the Federal Reserve will tighten monetary policy sooner than expected after U.S. consumer inflation surged in October to its highest since 1990.

At the close of trade, the Dow Jones Industrial Average index declined 240.04 points, or 0.66%, to 36,079.94. The S&P500 index dropped 38.54 points, or 0.82%, to 4,646.71. The tech-heavy Nasdaq Composite Index fell 263.84 points, or 1.66%, to 15,622.71.

Total volume turnover on U.S. exchanges stood at 10.17 billion shares. Declining stocks outnumbered advancing ones on the NYSE exchange by 2299 to 1068 and 131 closed unchanged. In the NASDAQ, 3338 issues declined, 1317 issues advanced, and 256 issues unchanged.

Total 8 of 11 S&P500 sectors ended down, with energy (down 3%) was bottom performing issue followed by information technology (down 1.7%) and communication services (down 1.25%) issues. Utilities (up 0.7%) was top performing sector, followed by consumer staples (up 0.28%).

ECONOMIC NEWS: US Consumer Prices Jump To Highest Level In Over 30 Years- US consumer price index jumped by 0.9% in October after rising by 0.4% in September, the labor department noted on Wednesday, lifting the annual rate of price growth to its highest level in over thirty years. The bigger than expected increase in consumer prices was partly due to a surge in energy prices, which spiked by 4.8% in October after jumping by 1.3% in September. Gasoline prices soared by 6.1%. Food prices also continued to see notable growth in October, advancing by 0.9% for the second consecutive month. Excluding the higher prices for food and energy, core consumer prices still increased by 0.6% in October after inching up by 0.2% in September. The core price growth partly reflected notable increases in prices for shelter, used cars and trucks, and new vehicles.

US Jobless Claims Continue To Dip Modestly- US Jobless Claims Continue To Dip Modestly- US initial jobless claims edged down to 267,000 in the week ended November 6th, a decrease of 4,000 from the previous week's revised level of 271,000, the Labor Department revealed on Wednesday. Jobless claims decreased for the sixth consecutive week, once again falling to their lowest level since hitting 256,000 in the week ended March 14, 2020.

US Wholesale Inventories Surge 1.4% In September- US wholesale inventories surged up by 1.4% in September after leaping by 1.3% in August, a report released by the Commerce Department on Wednesday showed. The bigger than expected increase in wholesale inventories came as inventories of durable goods and non-durable goods shot up by 1.3% and 1.6%, respectively. The report also showed a notable rebound in wholesale sales, which jumped by 1.1% in September after slumping by 0.9% in August.

Among Indian ADR, Tata Motors fell 0.45% to $33.46, WNS Holdings fell 0.32% to $87.52, INFOSYS dropped 1.46% to $22.96, Wipro dropped 1.87% to $8.91, HDFC Bank fell 0.96% to $71.42, and Azure Power Global fell 4% to $22.28. Dr Reddys Labs rose 0.43% to $64.94 and ICICI Bank added 1.66% to $20.76.

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