US stocks dip on inflation concerns, precious metals and dollar fluctuate
US major stock indexes closed lower on Wednesday, reacting to March's consumer inflation figures that exceeded expectations. The Dow Jones Industrial Average fell by 422 points, or 1.09%, closing at 38,461, while the S&P 500 dropped 49 points, or 0.95%, to settle at 5,160. The Nasdaq Composite saw a decrease of 136 points, or 0.84%, ending the day at 16,170.
The Bureau of Labor Statistics reported that consumer inflation in March escalated by 3.5% year-over-year and 0.4% month-over-month, surpassing analysts' predictions. Core CPI, which omits the more volatile food and energy sectors, also exceeded expectations, increasing by 0.4% monthly and 3.8% annually in March.
Amidst these inflationary pressures, the VIX volatility index, often referred to as the "fear index," saw a 5.7% rise to 15.84. Concurrently, the 10-year US Treasury yield climbed 4.3% to 4.550%.
In the currency market, the US dollar index advanced by 1% to 105.17, as the euro weakened by 1%, trading at $1.0743 against the dollar.
Precious metals experienced declines, with gold dropping 0.9% to $2,331 per ounce and silver decreasing by 1.1% to $27.86. In contrast, oil prices showed resilience, with Brent crude, the global benchmark, rising over 1.2% to $90.56 per barrel, and West Texas Intermediate crude, the US benchmark, increasing to $86.31.
