Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets, CFDs, OTC options or any of our other products work and whether you can afford to take the high risk of losing your money.

Wall Street tumbles on disappointing inflation data, Asian markets set to fall

bear market

US stocks dived amid hotter-than-expected inflation data. The US CPI for August printed at 8.3%, well above analyst estimates of 8.1%, though it slowed from 8.5% in July.  The short-term bond yield spiked on strengthened odds for another supersized rate hike by the Fed next week, possibly a full percentage. The US 2-year bond yield surged to 3.75%, the highest seen in December 2007. The US dollar reversed the last few days' losses, with the dollar index surging 1.5%, while both gold and oil fell on a strong USD.  

Source: bloomberg, CoinMarketCap
  • Dow fell 3.94%, S&P 500 slumped 4.32%, and Nasdaq dived 5.16%. All the 11 sectors in the S&P 500 closed in red, with growth stocks leading losses. Apple fell 5.9%, Amazon tumbles 7%, and Meta Platforms plunges 9.3%. 
  • Twitter shareholders voted to approve Elon Musk’s $44 billion bid after the company sued Musk for breaching the agreement earlier in August, with the trial to begin in October.
  • All the APAC currencies tumbled against the US dollar, while the Eurodollar fell below the parity level. Both AUD and NZD slashed by more than 2% against the greenback. USD/JPY bounced back to above 144, and the Chinese Yuan pared the last few days’ gains, falling to 6.98 against the USD this morning.   
  • Asian stock marketsare set to plunge as risk-off prevails. ASX futures decline 2.20%. Nikkei225 futures slump 2.68% and Hang Seng Index futures are down 2.34%. The US and EU are considering imposing sanctions on Taiwan affairs, which intensifies the geopolitical tension, adding pressure on risk assets.
  • Crude oil prices bounced off the day-lows, while gold slumped on a spike in the USD due to the disappointing US inflation data. The resilient moves in oil prices suggest that undersupply is still a primary issue in the physical markets, especially after OPEC kept its positive demand outlook on Tuesday.
  • Bitcoin plunged 9% due to the turnaround in risk assets, and Ethereum fell more than 6% in the last 24 hours, as Cryptocurrencies snapped a multiple-day winning streak due to the broad selloff in risk assets. 
Background image

Find your flow: four principles for trading in the zone

Learn about the four trading principles of preparation, psychology, strategy, and intuition, and gain key trading insights from some of the world's top investors.

Get this free report
Mobile trading app


Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.