After CPI data revealed that inflation has reached a 30-year high, US stocks fell Wednesday
The 10-year Treasury yield rose to 1.551%, compared to Tuesday's 1.431%.
Bitcoin reached a new record of $69,000 just moments after the inflation figures were published.
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After hotter-than expected inflation data, US stocks suffered their largest drop in a month on Wednesday. This was after the US's highest price rise in 30 years.
The Dow Jones Industrial Average closed lower by 240 points. Lower closing points were also recorded for the Nasdaq composite as well as S&P 500 benchmark.
The yield on the 10-year Treasury rose Wednesday to 1.551%, compared to Tuesday's 1.431%. Prices and bond yields move in opposite directions.
Here are the US indexes shortly after 4:00 p.m. ET closes Wednesday
The Consumer Price Index, a key indicator of national inflation, saw 6.2% annual inflation. This is the highest rate of inflation since 1990. The index also showed price growth increasing from September's one year jump.
CPI increased 0.9% in October, which was higher than the 0.6% estimate by Bloomberg economists. This reading is a significant improvement on the 0.4% increase in September, and represents the biggest one-month jump since 2008.
According to Lon Erickson (portfolio manager at Thornburg Investment Management), rising inflationary pressures are dragging both bonds and equities. This could prompt the Federal Reserve increase interest rates sooner than expected.
Erickson stated Wednesday that Treasuries have risen as global sovereign yields and Fed taper prices rise, in a note.
He said that investors believe the Fed will be patient. However, it seems like the central bank's "transitory thesis" is being challenged each month.
Mike Loewengart is the managing director of E-Trade Financial's investment strategy. He believes that inflation will not last despite the price pressures. He noted that it is "stickier than originally predicted".
He said Wednesday that although inflation is not as high as expected, it is still something most people want to see. However, he noted that there are many factors that could change the trajectory.
Coinbase Global fell 11% after its third quarter earnings, the largest cryptocurrency exchange in America, were reported. These results missed Wall Street's expectations.
Rivian's IPO debut saw a 46% rise, giving the electric vehicle maker a market value of over $110 billion.
Bitcoin reached a record $69,000 Wednesday, just moments after US inflation data revealed that prices are growing at an unprecedented rate.
Twitter has launched Twitter Crypto, a team that will be dedicated to digging deeper into the rapidly expanding cryptocurrency market and "all things web3 and blockchain".
After the Energy Information Administration report that inventories rose last Wednesday, oil prices fell.
West Texas Intermediate crude oil fell as much as 3.58%, to $81.14 a barrel. Brent crude oil, the international benchmark for oil, dropped 2.80% to $82.41 a barrel.
Another inflation hedge widely considered was gold, which edged higher by 0.91% at $1,846.53 an ounce.
