Dow Jones drops 209 points on shock inflation figures

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NEW YORK, New York – U.S. stocks continued lower on Wednesday following the release of the latest Consumer Price Index figures confirming inflation is raging in the U.S.

Industrial stocks fared worst but techs were also hit.

The CPI for June rose 9.1 percent compared to the same month last year, well ahead of analysts expectations.

“CPI delivered another shock, and as painful as June’s higher number is, equally as bad is the broadening sources of inflation,” Robert Frick, corporate economist at Navy Federal Credit Union told CNBC Wednesday.

“Though CPI’s spike is led by energy and food prices, which are largely global problems, prices continue to mount for domestic goods and services, from shelter to autos to apparel.”

The Dow Jones industrials dived 208.54 points or 0.67 percent to 30,772.79.

The Standard and Poor’s 500 dropped 17.02 points or 0.45 percent to 3,801.78.

The Nasdaq Composite eased 17.15 points or 0.15 percent to 11,247.58.

The U.S. dollar was mixed. The euro, after breaching parity to reach 0.9998 bounced to finish the New York trading session at 1.0060. The British pound slumped to 1.1893. The Japanese yen drifted lower to 137.31. The Swiss franc firmed to 0.9788.

The Canadian dollar strengthened to 1.2970. The Australian dollar was steady but well bid at 0.6762. The New Zealand dollar jumped to 0.6134.

Overseas, the German Dax fell 1.16 percent. The Paris-based CAC 40 was off 0.73 percent. In London, the FTSE 100 declined 0.74 percent.

In Asia, Japan’s Nikkei 225 did best, rising 142.11 points or 0.54 percent, to close Wednesday at 26,478.77.

The Australian All Ordinaries gained 21.00 points or 0.31 percent to 6,807.80.

China’s Shanghai Composite inched up 2.83 points or 0.09 percent to 3,284.29.

In New Zealand, the S&P/NZX 50 rose 6.94 points or 0.06 percent to 11,110.33.

South Korea’s Seoul Composite added 10.85 points or 0.47 percent to 2,328.63.

The Hang Seng in Hong Kong let go 46.79 points or 0.22 percent to 20,797.95.