Media stocks and broader markets fell on Tuesday, with all three major indices having their worst session since June 2020 based on reports that consumer prices rose more-than-expected last month.
The brutal sell-off hit technology and media stocks hard with Apple, Roku and Google down about 6%, Amazon and Snap down 7%, Spotify down more than 8%, and Facebook down by more than 8%. 9%.
Netflix was down 7%, as was Paramount Global. Comcast lost 6%, Lionsgate 5% and Disney nearly 4%. Warner Bros. Discovery shares fell 2.7%.
The DJIA was down 1,276 points, or nearly 4%. The Nasdaq fell more than 5%, while the S&P 500 fell 4.3%.
The fault lies with inflation, which hit a 40-year high earlier this year.
The Bureau of Labor Statistics released the Consumer Price Index (CPI) Today in early August it has already shown a lower-than-expected decline. Prices increased 8.3% on an annual basis and 0.1% on a monthly basis. Economists had predicted 8.1% growth for the year and 0.1% decline for the month.
The Federal Reserve is raising interest rates to keep things going. Today’s inflation number means another hike, likely another 0.75%, but that’s for sure next week when the Fed meets.
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Source: Deadline
Joseph Fearn is an entertainment and television aficionado who writes for The Fashion Vibes. With a keen eye for what’s hot in the world of TV, Joseph keeps his readers informed about the latest trends and must-see shows.
