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Wall Street plunges as inflation data stokes bets of large rate hikes

US consumer prices rise more than expected in August; traders see a small chance of 100 bps rate hike next week

Stocks, Stock market
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Traders work on the floor of the New York Stock Exchange (NYSE) in New York City (Photo: Reuters)

Reuters
US stocks slumped on Tuesday, with technology shares taking the biggest hit, after data showed monthly consumer prices unexpectedly rose in August, cementing bets of a third straight 75-basis-point rate hike from the Federal Reserve next week.

The Fed has raised borrowing costs faster this year than at any time since the 1980s, showing its determination to keep raising rates until there is a sustained drop in inflation, which has been running at 40-year highs and above the Fed's target of 2%.

The Labor Department's consumer price index (CPI) report showed monthly CPI gained 0.1% in August from July, against expectation of

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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