Wall Street slid on Tuesday, bringing a multi-day rally of straight record closing highs to a close as profit-taking and worries over ongoing inflation fueled a broad sell-off.
All three major U.S. stock indexes were down, with the S&P 500 and the Nasdaq setting a course to snap their winning streak of eight consecutive record closing highs.
After such a run, and in the absence of market-moving catalysts, market participants appeared primed to take profits. "It's a risk-off day," said Jay Hatfield, CEO and portfolio manager at InfraCap Advisors in New York. "After PPI today and with CPI tomorrow, it's reasonable that we take a pause." "Earnings season is nearly over and we're at all-time highs," Hatfield added. "It makes sense that the market would stall and maybe test some support levels."The Labor Department's producer prices report showed inflation continues to gather heat as ongoing goods and labor supply challenges send price growth further beyond the U.S. Federal Reserve's average annual 2% inflation target.
Wednesday's CPI report will be scrutinized for clues regarding the extent to which producer prices are being passed along to the consumer, whose spending represents about 70% of the U.S. economy.
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