US stocks drop to their worst day since July as inflation worsens

U.S. stocks plummeted to their worst day since July on Wednesday due to worsening signs of inflation, according to wire material. The S&P 500 plummeted 1.1 percent for the fifth consecutive loss in six days since reaching its peak. The Dow Jones Industrial Average slipped 48 points, or 0.1 percent, while the Nasdaq composite declined 1.9 percent as shares in the artificial intelligence sector drove the downward trend.

The pressure on stocks stemmed from rising yields in the bond market, with growing concerns following a report indicating that U.S. consumers paid prices for fuel, food, and other living expenses last month that were 3.7 percent higher than a year ago. This suggests that inflation accelerated from 3.4 percent in August and surpassed the 3.6 percent expected by economists.

Inflation has remained more severe than anticipated since the economy rebounded from the COVID-19 pandemic, and it has intensified recently due to surges in fuel prices sparked by the conflict with Iran. The price of a barrel of Brent crude rose 0.4 percent to $106.06 on Wednesday.