The Dow Jones Industrial Average (DJIA) experienced consecutive losses on Wednesday, following a surge in consumer inflation driven by higher energy costs. Meanwhile, the S&P 500 and Nasdaq Composite managed to end the day with modest gains.
Dow Jones Industrial Average
The DJIA, having shed about 70 points or 0.2%, closed near 34,565, according to preliminary FactSet data. This marks the second consecutive day of decline for the index.
S&P 500 and Nasdaq Composite
On the other hand, the S&P 500 index saw a slight gain of 0.1%, while the Nasdaq Composite Index finished with a 0.3% increase.
Uncertainty Looms
The Dow and S&P 500 faced uncertainty earlier in the day, with both indices oscillating between small gains and losses. Investors were pondering whether the Federal Reserve would need to raise its policy rate further this year in order to combat inflation. Notably, the Fed elevated its benchmark rate in July to a 22-year high.
Consumer Price-Index
In August, the consumer price-index indicated a rise in inflation compared to the previous month. The yearly rate climbed to 3.7% from 3.2% in July, and substantially increased from a 27-month low of 3% in June.
