Stocks slide into biggest decline since June 2020 on inflation fears

Media and tech stocks across the board felt the pain on Tuesday amid a market-wide selloff fueled by a new indicator that higher-than-expected inflation continues to dampen economic growth.

The Dow Jones Industrial Average lost 1,276 points, down 3.94%, to close Tuesday’s session at 31,104.97. The S&P 500 Index fell 4.32%, while the tech-heavy Nasdaq Index fell 5.16%. The declines represented the largest one-day declines for U.S. stocks since June 2020.

Wall Street’s losses came after the US Bureau of Labor Statistics released data for August 2022 showing the consumer price index for the month rose 8.3% year-on-year (down only slightly from 8.5%). in July and compared to the previous quarter). decade high 9.1% in June). The rise in CPI came despite a 10.6% drop in gas prices for the month, which failed to offset rising prices for rent, healthcare, groceries, and electricity and natural gas.

Among the biggest losers were Netflix, which fell 7.8% to $218.13 per share, and Meta, the parent company of Facebook and Instagram, which fell 9.4% to $153.13 per share .

Media stocks that fell Tuesday included Paramount Global (-7.13%), AMC Networks (-6.71%), Comcast (-6.25%), Lionsgate (-4.64%), Disney (-3, 98%), Fox Corp. (-3.76%). ) and Warner Bros. Discovery (-2.7%).

Among other big tech stocks, Amazon fell -7.1%, and Apple and Alphabet each fell -5.9%.

One of the few stocks to close higher on Tuesday was Twitter: Shares of the social media company ended the day up 0.8% to $41.74 per share after shareholders predicted the $44 billion dollar deal to sell the company to Elon Musk. However, Musk wants to end the deal – under which he originally agreed to buy Twitter for $54.20/share – and is heading for a court showdown.

https://variety.com/2022/biz/news/media-stocks-drop-inflation-fears-1235371651/ Stocks slide into biggest decline since June 2020 on inflation fears

Charles Jones

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