3 weeks ago
Dow Ends Lower as Tech, Oil Weigh Ahead of CPI
On a day when grown-ups who buy and sell stocks felt nervous, America's big money markets mostly went down.
The Dow Jones, one of the most famous stock trackers, ended the day with a loss of 180 points.
Two big reasons made investors worried.
First, some very famous technology companies lost value, including Google's parent company Alphabet.
Second, the price of oil went up, which can make things cost more.
People were also waiting for a new government report about inflation, which is how much prices go up over time.
Experts think that report will show prices rising very slowly, which could be good news.
Big banks disagree about whether prices will stay high or start to cool.
Oil experts warn that supply problems could last for years.
Everyone is watching to see what the new report will say.
The Dow Jones ended 180 points lower on Tuesday after falling over 430 points from its intraday high, with the S&P 500 down 0.3% and the Nasdaq down 0.6%.
Alphabet fell another 4%, its fourth drop in five sessions, after Google announced changes to its AI labs division; Apple slipped on a Jefferies downgrade and Nvidia closed below the flat line.
Brent crude traded near $90 a barrel and WTI above $83, up over 11% in four sessions, after Bloomberg quoted Pakistan Defence Minister Khwaja Asif saying the US and Iran are close to 'some sort of agreement' over peace and the Strait of Hormuz.
The US Energy Information Administration warned oil supply disruptions could last until the end of 2027 and may reach 600,000 barrels per day.
Markets awaited July CPI data, with economists expecting a 0.1% month-on-month rise and core CPI at its lowest annualized level since 2021, while Wells Fargo and Citigroup differed on the inflation outlook.
- Who
- Investors and traders on Wall Street, with tech stocks such as Alphabet, Apple and Nvidia under pressure
- What
- US stock indices fell as tech shares dropped and crude oil prices climbed, ahead of the July consumer price inflation (CPI) report
- Where
- Wall Street, United States
- When
- Tuesday, August 11
- Why
- Tech share declines, rising oil prices and caution before the July CPI release weighed on market sentiment
Wells Fargo's View
Citigroup's View
Inflation outlook after July CPI
Wells Fargo's View
Wells Fargo believes elevated energy product prices and stickiness in areas such as rent and medical care make a less sanguine case for near-term inflation.
Citigroup's View
Citigroup says the CPI will show signs of cooling in prices beyond energy and put the focus back on domestic economic drivers.
Key facts
- Dow Jones close
- Down 180 points (after falling over 430 points from intraday high)
- S&P 500
- Down 0.3%
- Nasdaq
- Down 0.6%
- Alphabet stock
- Down 4%, fourth loss in five sessions
- Brent crude
- Near $90 a barrel
- WTI crude
- Above $83 a barrel, up over 11% in four sessions
- EIA supply warning
- Disruptions could last till end of 2027; up to 600,000 barrels per day
- July CPI forecast
- +0.1% month-on-month; core CPI lowest annualized since 2021
Quotes
Pakistan Defence Minister Khwaja Asif
Pakistan defence minister who commented on U.S.-Iran talks
“"some sort of agreement"”
CNBC TV 18
Sources
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