Fears of rising inflation hammered Wall Street on Wednesday, with grim price data sparking a sell-off in blue chip and technology stocks, while amplifying new concerns about the rebound from COVID-19.
A brutal drop that began on Tuesday — and drove the Dow Jones Industrial Average to its worst day since February — intensified into a second day. The blue-chip index plummeted by over 500 points intraday, with technology shares leading the declines as the Nasdaq shed over 2%.
With a weekend cyber-attack sharply driving up the cost of gas nationwide — while sparking shortages — investors are growing increasingly restive that price pressures may be rousing themselves from an extended slumber. Mounting signs of supply shortages in the face of surging demand threatening to spur a rapid rise in prices.
Those fears crystallized early Wednesday, after the government reported that headline consumer prices surged by a faster than expected 4.2% last month….