The US stocks are opening sharply lower after tumbling after the higher than expected CPI data this morning. The declines are led by the NASDAQ index. Which is now down around -3.0% on the day trading at session lows.

A snapshot of the market currently shows:

  • Dow industrial average -620.73 points or -1.92% at 31760.62
  • S&P index -94.49 points or -2.30% at 4015.93
  • NASDAQ index -3 and 70 points or -3.02% 11896.46
  • Russell 2000-45 points or -2.37% at 1860.97

Looking at the hourly chart of the NASDAQ index, the price is approaching the 50% midpoint of the move up from the September low which comes in at 11868.51 (the price is now down -3.19% as the selling continues at the open). The price also fell back below its 100 hour moving average at 12024.02. That level will now be a resistance level once again.

NASDAQ
NASDAQ index falls to the 50% midpoint

The US CPI data today saw increases in shelter, food, medical care as the largest contributors to the upside. Those gains were offset by a 10.6% decline in gasoline index.

  • Food also continue to rise by 0.8% over the month.
  • Energy fell -5.0%, but electricity natural gas increased.
  • Ex food and energy the CPI rose 0.6%.
  • The indices for shelter, medical care, household furnishings and operations, new vehicles, motor vehicle insurance, and education were among those increased over the month.
  • Declines came in airline fares, communication, used cars and trucks.