U.S. stocks declined sharply on Wednesday as hotter-than-expected inflation data triggered massive selling, especially in technology shares.
The Dow Jones Industrials tumbled 681.5 points, or 2%, to 33,587.66, posting its worst day since January.
The S&P 500 lost 89.06 points, or 2.1%, to 4,063.04, for its biggest drop since February,
The NASDAQ stumbled 357.74 points, or 2.7%, to 13,031.68, bringing its weekly decline to more than 5%.
Tech shares, which have been under pressure this week and this month, led the decline again Wednesday as bond yields jumped. Shares of Microsoft, Netflix, Amazon and Apple all fell more than 2%, while Tesla slid over 4%. Alphabet dropped more than 3%.
Strength in energy shares, which could do well in an inflationary environment, provided the broader market with some cushion. Occidental Petroleum climbed 2.4%. Chevron and Marathon Oil gained slightly.
Inflation accelerated at its fastest pace since 2008 last month with the Consumer Price Index spiking 4.2% from a year ago, compared to the Dow Jones estimate for a 3.6% increase. The monthly gain was 0.8%, versus the expected 0.2%.
Prices for 10-Year Treasurys lost sharply, raising yields to 1.70% from Tuesday’s 1.62%. Treasury prices and yields move in opposite directions.
Oil prices gained 56 cents to $65.84 U.S. a barrel.
Gold prices dropped $18.90 to $1,822 U.S. an ounce.