The U.S. stock market crashed on Tuesday, marking the worst day for stocks since June 11, 2020, with August inflation being a key factor for worried investors.
The dow was down 1276 points, or 3.8%, the S&P 500 fell 4.3%, and the Nasdaq Composite tumbled by 5.2%.
The drop has left investors anxious about inflation, which was predicted to drop by 0.1%, but instead rose by that margin.
The drop in the market is a broad-based slide, meaning that all eleven sectors of the market are heading lower, CNN reported.
Among the biggest losers on Tuesday were tech, retailers, and banks stocks, which all trended downward. If the Federal Reserve raises interest rates again to get inflation under control, those three groups will be hit the hardest.
Wall Street continues to remain skeptical of higher interest rates, fearing that they could cause an economic slowdown or a recession.
Brian Jacobsen, a senior investment strategist for Allspring Global Investments, shared with the Associated Press that investors are more focused on what will happen instead of what has happened.
“Right now, it’s not the journey that’s a worry so much as the destination,” Jacobsen said. “If the Fed wants to hike and hold, the big question is at what level.”
The next federal reserve meeting is scheduled for later this month. Analysts with the Wall Street Journal have shared that they were hoping the Fed would ease back on interest-rate increases, but the data presented Tuesday seems to mean otherwise.
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