US stocks decline as inflation soars

Stocks fell after data showing that inflation hit a three-decade high added to investors’ concerns about price pressures in the economy. The S&P 500 lost 0.82% to 4646.71. The Dow Jones Industrial Average decreased 0.66% falling to 36079.94 while the Nasdaq Composite was down 1.66% at 15622.71. Treasuries also tumbled Wednesday, sending yields surging after a bigger-than-expected jump in U.S. inflation sowed concern that the Federal Reserve will be forced to start raising interest rates sooner than traders anticipated.

European equities eked out gains, rising to a record high on Wednesday, as investors weighed solid earnings reports against the risks from intensifying inflationary pressures. Stoxx 600 Europe Index gained 0.22% on Thursday, DAX rose by 0.17%, and CAC 40 gained 0.03%, while FTSE 100 was up 0.91%. Most yields along the German sovereign yield curve rose, with 15-year bonds moving the most in Wednesday afternoon trading. Gilts tumbled across the curve, with U.K. 30-year yields poised for their biggest advance this year after U.S. inflation numbers beat median estimates, triggering concern about the pace of BOE rate hikes.

The Hong Kong Hang Seng Index opened lower on Thursday, but rallied in trading, finishing up 1%, after heavily leveraged property-colossus China Evergrande made timely bond payments, thus skirting default. Property and tech issues rallied.

Oil prices dropped noticeably on Wednesday after data showed an increase in U.S. crude stockpiles. Brent crude futures closed at $82.64 a barrel on Monday, down 2.52%. U.S. West Texas Intermediate (WTI) crude futures stood at $81.34, down 3.34%.