Dow plummets 800 points

Dow Jones Plummets 880 Points after Inflation Hits 40-Year High
Stocks on Wall Street have plummeted across the board after a highly anticipated inflation report and consumer sentiment survey produced shocking results

Stocks on Wall Street have plummeted across the board after a highly anticipated inflation report and consumer sentiment survey produced shocking results.

The May Consumer Price Index (CPI) report by the U.S Bureau of Labor Statistics surprised experts with a rapid rise in prices due to inflation, and bad news from the preliminary reading of the University of Michigan’s Consumer Sentiment Index (CSI) for June saw consumer sentiment hitting a record low.

The May consumer price index rose 8.6 percent year-over-year to its highest level since 1981, which is 6 percent if excluding food and energy prices, and well above the forecasted 8.3 percent increase for the main index and 5.9 percent for the core index.

Federal Reserve policymakers, however, have historically looked to the Personal Consumption Expenditures over the CPI report as their preferred inflation measure.

Meanwhile, high inflation figures are further triggering investors’ worries about a possible economic downturn later this year.

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