The Dow Jones Industrial Average dropped 200 points Wednesday, as a key U.S. inflation gauge came in higher than expected.
Consumer prices increased more than expected in September, the Labor Department reported Wednesday. The consumer price index rose 0.4% for the month and 5.4% year over year. Econoday estimates expected inflation to rise 5.3% in September from a year earlier and a seasonally adjusted 0.3% in September from August. The 10-year Treasury yield dropped 4 basis points, to 1.54%.
Among the top Dow Jones stocks, Apple sold off 1.3% Wednesday after Bloomberg reported the company will likely have to cut 2021 iPhone production goals of 90 million handsets by up to 10 million handsets due to extended chip shortages.
Apple stock is on pace to extend a losing streak to three sessions, falling further below its 50-day line.
MacDailyNews Take: Again, it’s best to get a handle on inflation, if you know how, while you still can.
Inflation is repudiation. — Calvin Coolidge
When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan
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