Wall Street’s main indexes closed lower on Wednesday, with the Nasdaq leading losses, after US inflation data failed to allay investor concern over interest rate hikes.
The US Labor Department said Wednesday that the consumer price index rose 0.3 percent last month, the smallest rise since August, compared to a 1.2 percent rise on a monthly basis in the consumer price index in March, which constituted the largest jump since September 2005.
On an annual basis, the consumer price index rose 8.3%, compared to expectations of 8.1%, but less than 8.5% in the previous month.
The data indicated that inflation may have peaked, but is unlikely to ease quickly, which would prompt the Federal Reserve to change its current plans to tighten policy.
According to preliminary data, the Standard & Poor’s 500 index fell by 65.51 points, or 1.64%, to close at 3,935.54 points.
The Nasdaq Composite Index lost 370.94 points, or 3.16%, to 11,366.73 points.
The Dow Jones Industrial Average fell 325.42 points, or 1.01%, to 31,835.32 points.