Dow Jones drops 770 pts as inflation concerns intensify

US stocks declined on Wednesday after producer price data came in above expectations, fueling inflation concerns, alongside the Federal Reserve decision to keep interest rates unchanged.

The Dow Jones Industrial Average fell 1.63%, or 768 points, to 46,225, marking its lowest level since the start of the year.

The S&P 500 declined 1.36% (91 points) to 6,624. The Nasdaq Composite dropped 1.46% (327 points) to 22,152.

In Europe, the Stoxx Europe 600 fell 0.75% to 597 points, with losses across most sectors.

The UK’s FTSE 100 declined 0.94% to 10,305 points. Germany’s DAX dropped 0.96% to 23,502 points. France’s CAC 40 was broadly flat at 7,969 points.

In Asia, Japan’s Nikkei 225 rose 2.87% to 55,239 points. The broader TOPIX gained 2.49% to 3,717 points.

As for commodities, Brent crude (May futures) surged 3.83% ($3.96) to $107.38 per barrel.

WTI Crude Oil (April futures) edged up 0.11% ($0.11) to $96.32 per barrel.

Gold (April futures) fell 2.23% ($112) to $4,896.20 per ounce.

What’s Driving Markets?

Investor concerns about inflation intensified amid rising oil prices and stronger-than-expected producer price data. At the same time, the Federal Reserve signaled uncertainty about the economic outlook due to the Middle East conflict, noting that it is making progress on inflation, not as much as hoped, but some progress on inflation.