Ovunc Kutlu
11 November 2021•Update: 11 November 2021
ANKARA
Major US stock indices closed sharply lower Wednesday after consumer prices climbed to their highest levels in 31 years.
The Dow Jones tumbled 240 points, or 0.66%, to end the day at 36,079 points with investment banking firms Goldman Sachs and Morgan Stanley falling more than 1.5% each.
The S&P 500 was down 38 points, or 0.82%, at 4,646 despite Tesla overperforming with a 4.3% gain.
The Nasdaq declined 263, or 1.66%, to 15,622. Coinbase dove 8.2%, while BlackBerry shed 6.3%.
The steep decline in indices came after the consumer price index (CPI) rose 6.2% in October -- the largest 12-month increase since November 1990. Core CPI jumped 4.6% year-on-year, its largest 12-month increase since August 1991.
Amid worries of high inflation, the VIX volatility index was up 5.3% at 18.73.
The yield on 10-year US Treasury notes soared 8.8% to 1.577%, while the US dollar index jumped 1% to 94.90.
Oil prices reversed course, with international benchmark Brent crude trading at $82.61 a barrel -- a 2.6% loss. US benchmark West Texas Intermediate crude fell 3.4% to $81.31.
Investors rushed to precious metals as a safe haven to preserve their assets from high volatility and record inflation. Gold added 1.1% to $1,851 an ounce and silver rose 1.4% to $24.65.
Despite extending its record to $69,000 at 9.15 a.m. EDT, the price of Bitcoin was down 3.7% at $64,850 shortly after the closing bell.
