Stocks open sharply lower on inflation report

Stocks sharply dropped at market open on Thursday after the Labor Department reported that inflation accelerated for the second straight month.

The Nasdaq fell 3 percent, slipping around 300 points on Thursday. The Dow Jones dropped 1.7 percent and the S&P 500 sunk 2.22 percent.

The Labor Department’s latest data showed the consumer price index, the key measurement for inflation, rose 0.4 percent in September and 8.2 percent over 12 months.

With inflation remaining around a 40-year high, the Federal Reserve is expected to continue raising interest rates to curtail inflation.

With each bump to the baseline interest rates, economists grow increasingly concerned the central bank will spur steep job losses in its fight against inflation.

Recession woes continue to shake up the political environment with the midterm elections less than a month away.

JPMorgan Chase CEO Jamie Dimon warned this week that rising interest rates and geopolitical tensions are likely to create a recession before the end of 2023.

President Biden on Tuesday night conceded there is a possibility of a “slight recession,” while reiterating that he doesn’t think there will be one at all in the U.S.