Dow drops over 250 pts premarket after inflation data

Wednesday, 12. May 2021 14:31

The Dow Jones dropped over 250 points during premarket trading on Wednesday after it was revealed that consumer prices in the United States jumped 4.2% in April.

Although officials at the Federal Reserve have repeatedly stated in recent weeks they expect rising inflation will be transitory, the data further fueled investors' fears that the central bank could tighten its monetary policy soon.

The Dow Jones was down 255 points at 8:30 am ET. At the same time, the S&P 500 sank 1% while the Nasdaq 100 tumbled 1.52%.

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