Early on Tuesday, Wall Street stocks experienced a significant decline following the release of inflation data, which has raised uncertainties regarding US monetary policy, particularly in a market perceived as overextended.
Quincy Krosby of LPL Financial highlighted Monday’s manufacturing sector report, indicating increased costs, as another indicator of mounting inflation pressures, coinciding with the upward trajectory of oil prices.
Krosby noted that the likelihood of a rate cut in June is diminishing, stating, “Every metric indicates this market remains overbought,” suggesting an inevitable correction.
As of 1420 GMT, the Dow Jones Industrial Average had declined by 1.0 percent to 39,163.36, while the S&P 500 dropped by 1.0 percent to 5,193.47, and the Nasdaq Composite Index fell by 1.4 percent to 16,173.06.
The healthcare sector witnessed notable declines following the announcement of lower-than-expected reimbursements under the government Medicare program.
