NEW YORK, April 30 (Xinhua) -- U.S. stocks tanked amid inflation worries on Tuesday, the final trading session of a downbeat month for stocks.
The Dow Jones Industrial Average fell by 570.17 points, or 1.49 percent, to 37,815.92. The S&P 500 sank 80.48 points, or 1.57 percent, to 5,035.69. The Nasdaq Composite Index shed 325.26 points, or 2.04 percent, to 15,657.82.
All of the 11 primary S&P 500 sectors ended in red, with energy and consumer discretionary leading the laggards by going down 2.89 percent and 2.66 percent, respectively. Health posted the weakest decline, down 0.11 percent.
The Conference Board reported on Tuesday that U.S. consumer confidence declined for the third consecutive month, reflecting ongoing concerns among Americans about their near-term financial situations amid persistently high prices and interest rates.
The consumer confidence index dropped to 97 in April from 103.1 in March, gauging both current economic conditions and future outlook over the next six months. Responses to the Conference Board's survey showed that Americans remain concerned about high prices, particularly for food and gas.
U.S. wage growth accelerated in the first quarter of the year, maintaining a strong pace above pre-pandemic levels, indicating ongoing challenges for the Federal Reserve in controlling inflation. The employment-cost index, a measure of employee compensation, increased by 1.2 percent on a seasonally adjusted basis from the previous quarter and by 4.2 percent compared to a year ago, according to the Labor Department. This quarterly rise surpassed the 0.9 percent growth in the fourth quarter and exceeded the 1 percent forecasted by economists.
Fed officials commenced a two-day policy meeting on Tuesday, maintaining overnight interest rates at 5.3 percent with no surprise. Fed Chair Jerome Powell has emphasized the need for increased confidence in inflation returning to target levels before considering rate cuts.
The Fed faces a challenging scenario where progress in combating inflation appears to have stalled, posing risks to anticipated rate cuts sought by financial markets and the Biden administration later this year. This situation may lead to a potential need for policy tightening instead.
April concluded with significant earnings releases. Eli Lilly's stock saw an increase of 5.95 percent following its earnings report, whereas GE Healthcare Technologies dived 14.28 percent. Amazon.com shares lost 3.29 percent ahead of its earnings announcement scheduled after the market close.
