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YIKES! The Dow Falls More Than 700 Points After Inflation Hits 40-Year High, Consumer Sentiment Plummets

The Dow Jones Industrial Average has dropped more than 700 points after inflation has hit a 40-year high, due to this consumer’s attitudes towards the economy have diminished severely. 

CNBC reported “Stocks dropped sharply on Friday after a highly anticipated inflation report showed a faster-than-expected rise in prices and consumer sentiment hit a record low.”

The CNBC article further detailed the situation stating:

The Dow Jones Industrial Average shed 880 points, or 2.73%, to close at 31,392.79. The S&P 500 fell 2.91% to settle at 3,900.86. The Nasdaq Composite sank 3.52% to 11,340.02.

The May consumer price index report came in at its highest level since 1981, putting pressure on the stock market. The report showed prices rising 8.6% year over year, and 6% when excluding food and energy prices. Economists surveyed by Dow Jones were expecting year-over-year increases of 8.3% for the main index and 5.9% for the core index.

“It’s confirming some of the fears I’ve been hearing from investors this week,” said Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets. She said alarm over inflation has been driving stocks lower this week.

Audacy reported on the situation of the Dow index stating:

The latest polling of the American public shows that their opinion of President Joe Biden, at least when it comes to economic matters, continues to crater.

The poll, conducted by ABC News/Ipsos, shows just a 37% approval rating for Biden’s handling of America’s economic recovery from the COVID pandemic.

The latest polling of the American public shows that their opinion of President Joe Biden, at least when it comes to economic matters, continues to crater.

The poll, conducted by ABC News/Ipsos, shows just a 37% approval rating for Biden’s handling of America’s economic recovery from the COVID pandemic.

That’s not a great sign for the White House, considering that 83% of respondents now say the economy will be either extremely or very important in determining their votes in the upcoming mid-term elections.

Major distinct concerns that registered as extremely or very important include inflation (80%) and gas prices (74%).

As the American people grow in disdain for the Biden administration’s handling of the U.S. economy, democrats are likely to suffer even more in the November midterm elections.

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