Stocks are little changed as Wall Street tries to rally after the worst day since June 2020
Stocks swung between gains and losses on Wednesday as investors tried to regain their footing after the biggest one-day drop in more than two years.
The Dow Industrial Average slipped 32 points, or 0.1%. The S&P 500 was flat and the Nasdaq Composite rose about 0.1%.
Apple and Johnson & Johnson rose more than 1% to support the Dow Jones, but Honeywell and Boeing fell more than 1% each.
The Dow sank more than 1,200 points on Tuesday, or almost 4%, while the S&P 500 lost 4.3%. The Nasdaq Composite fell 5.2%. It was the biggest one-day drop for all three averages since June 2020.
The market moves came after August’s Consumer Price Index report showed headline inflation rose 0.1% on a monthly basis despite lower gasoline prices.
The hot inflation report left questions over whether stocks could return to their June lows or fall even further. It also sparked some fears that the Federal Reserve could potentially hike even more than the 75 basis points the markets are pricing.
“Tuesday’s selloff reminds us that a sustained recovery will likely require clear evidence that inflation is on a downtrend. With macroeconomic and political uncertainty elevated, we expect markets to remain volatile in coming months,” said Mark Haefele, CIO of UBS Global. Wealth Management, said in a note to clients.
All 30 Dow Jones stocks and S&P 500 sectors ended the session lower, dragged lower by communications services. The sector fell 5.6% and ended its worst day since February, led by shares of big tech names like Netflix and Meta Platforms, which fell around 7.8% and 9.4%, respectively.