U.S. Dow fails to recover from earlier massive slump – Xinhua English.news.cn

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A trader works at the New York Stock Exchange (NYSE) in New York, the United States, Sept. 13, 2022. (Photo by Michael Nagle/Xinhua)

Wednesday’s Dow stood at 31,135 at the close of trading – a negligible 0.10% increase after Tuesday’s biggest one-day drop since June 2020.

WASHINGTON, Sept. 14 (Xinhua) — The Dow Jones Industrial Average failed to recover from a massive plunge the day before on Wednesday.

Wednesday’s Dow stood at 31,135 at the close of trading, a negligible 0.10% increase from the previous day.

This is after Tuesday’s biggest one-day drop since June 2020, following news that record inflation is not fading as fast as investors would like.

The Nasdaq rose 0.74% – a slight gain, given Tuesday’s massive decline, in which the index lost more than 800 points.

Boeing, one of the largest stocks by market capitalization on the exchange, edged up 1.32% on Wednesday, after falling the day before.

Johnson & Johnson rebounded from Tuesday’s losses to 2.06% as markets closed on Wednesday.

Caterpillar continued to fall, down 0.18% at the close of trading, after the stock fell the day before.

Shares of Walmart continued to fall slightly, 0.22%, after taking a hit on Tuesday.

Do-it-yourself home improvement chain Home Depot continued to plunge on Wednesday, and the stock has seen a price drop of nearly 7% over the past five days.

A trader works at the New York Stock Exchange (NYSE) in New York, the United States, September 13, 2022. (Photo by Michael Nagle/Xinhua)

On Tuesday, the inflation rate hit a still-high 8.3%, according to the Bureau of Labor Statistics. This dashed hopes on Wall Street that inflation would fade faster.

The US Federal Reserve desperately tried to rein in the worst inflation in four decades with a series of interest rate hikes, but to no avail.

This means that the Fed will continue to raise interest rates, which risks triggering a recession.

That could be bad news for Democrats, as November’s midterm elections are fast approaching. With the US president’s approval rating near record lows, high inflation won’t help the Democrats.

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