US Stocks Open Lower After Inflation Report, Dow Dips 700 Points

U.S. stocks traded sharply lower this morning, following the release of inflation data for August

Following the market opening Tuesday, the Dow traded down 2.18% to 31,675.17 while the NASDAQ fell 3.30% to 11,861.20. The S&P 500 also fell, dropping, 2.54% to 4,006.05.

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Leading and Lagging Sectors

• Energy shares fell by just 0.6% on Tuesday. Meanwhile, top gainers in the sector included Cheniere Energy, Inc. LNG, up 5% and Kosmos Energy Ltd. KOS up 3%.
• In trading on Tuesday, communication services shares tumbled by 3.9%.

Top Headline

The Labor Department reported an 8.3% year-over-year increase in the consumer price index for August, another sign that inflation may have peaked in June. According to data from the U.S. Bureau of Labor Statistics, the headline CPI rose 8.3% in August, down from 8.5% in July. The August CPI reading came in above average economist estimates of 8%.

Equities Trading UP

• Akero Therapeutics, Inc. AKRO shares shot up 126% to $27.57 after the company's Phase 2b HARMONY study met its primary endpoint for both the 50mg and 28mg EFX dose groups.
• Shares of NeuroBo Pharmaceuticals, Inc. NRBO got a boost, shooting 155% to $42.61 as the stock started trading on a 1-for-30 reverse split basis.
• 89bio, Inc. ETNB shares were also up, gaining 36% to $6.78. Analysts reportedly said Akero's NASH data could be a positive for the company's Pegoza program in NASH.

Equities Trading DOWN

• Rent the Runway, Inc. RENT shares tumbled 31% to $3.4050 after the company reported issued Q3 guidance below estimates and announced a workforce reduction of 24% of corporate employees.
• Shares of Cardiff Oncology, Inc. CRDF were down 30% to $2.2550. Following a strategic review, Cardiff Oncology decided it will not independently fund any future clinical activities in metastatic castrate-resistant prostate cancer (mCRPC), citing clinical data and therapeutic landscape.
• InMed Pharmaceuticals Inc. INM was down, falling 22% to $14.60. InMed Pharmaceuticals recently announced a $6 million private placement priced at $8.68 per share.

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Commodities

In commodity news, oil traded down 0.4% to $87.42, while gold traded down 1.3% at $1,717.90.

Silver traded down 1.1% to $19.65 on Tuesday while copper fell 1% to $3.5760.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 1.1%, London’s FTSE 100 fell 0.8%, while Spain’s IBEX 35 Index fell 1.2%. The German DAX declined 1%, French CAC 40 fell 0.9% and Italy’s FTSE MIB Index fell 0.8%.

The annual inflation rate in Spain fell to 10.5% in August from 10.8% in the prior month, while annual inflation rate in Germany was confirmed at 7.9% during the month.

The unemployment rate in the UK declined to 3.6% in the three months to July, the lowest since 1974, while average weekly earnings including bonuses rose by 5.5% year-over-year to GBP 613 during the same period.

Economics

• The NFIB Small Business Optimism Index rose to 91.8 in August from 89.9 in July.
• The Labor Department reported an 8.3% year-over-year increase in the consumer price index for August, another sign that inflation may have peaked in June. According to data from the U.S. Bureau of Labor Statistics, the headline CPI rose 8.3% in August, down from 8.5% in July. The August CPI reading came in above average economist estimates of 8%.
• The Treasury is set to auction 30-year bonds at 1:00 p.m. ET.
• The U.S. Treasury budget statement for August will be released at 2:00 p.m. ET.

Check out this: Market Volatility Increases Ahead Of US Inflation Data

COVID-19 Update

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 97,164,730 cases with around 1,076,050 deaths. India confirmed a total of at least 44,504,940 cases and 528,180 deaths, while France reported over 34,722,710 COVID-19 cases with 154,520 deaths. In total, there were at least 614,400,750 cases of COVID-19 worldwide with more than 6,518,290 deaths.