NEW YORK: US stocks fell on Wednesday, with the Dow Jones index shedding more than 100 points as a slide in oil prices and concerns about the fate of US tax cuts weighed on the mood.
Oil prices slipped for the fourth day running after the International Energy Agency issued a gloomy outlook for demand. Metal prices also slid as data from China stoked fears of a slowdown in the world’s top commodities consumer.
Reports showed US consumer prices edged up 0.1 percent in October, lifting the year-on-year increase in the core CPI to 1.8 percent, while retail sales unexpectedly rose in October, firming the case for a December interest rate hike.
But a flattening yield curve, which is at its lowest level since November 2007, is concerning investors as they worry the Federal Reserve may raise interest rates too much, slowing longer term inflation and growth.
“It’s a risk-off day. The market is looking for a reason to pause,” said Aaron Clark, portfolio manager at GW&K Investment Management.
“There have been signs of weakness developing beneath the surface for a few days with the high yields and concerns about tax deal.”
At 9:38 a.m. ET (1338 GMT), the Dow Jones Industrial Average was down 148.11 points, or 0.63 percent, at 23,261.36, the S&P 500 was down 18.41 points, or 0.71 percent, at 2,560.46 and the Nasdaq Composite was down 59.18 points, or 0.88 percent, at 6,678.70.
Target slid about 10 percent after the retailer issued a disappointing profit forecast for the key holiday quarter.
Amazon-owned Whole Foods Market announced price cuts on best-selling grocery items and holiday staples. Kroger fell 2.86 percent, Costco and Kellogg slipped about 2 percent each.
Snap was down 2.7 percent after shareholders including T. Rowe Price and Soros Fund slashed stakes in the Snapchat maker.
Declining issues outnumbered advancers on the NYSE by 2,214 to 424. On the Nasdaq, 1,999 issues fell and 426 advanced.
Source: Brecorder.com
