Stocks slide as inflation spikes, oil nears $66 per barrel

U.S. equity markets were lower Wednesday as traders digested a hotter than expected reading on consumer prices. 

The Dow Jones Industrial Average fell 116 points, or 0.34%, while the S&P 500 and the Nasdaq Composite were lower by 0.54% and 1.32%, respectively. 

The consumer price index for April rose 4.2% year over year, the biggest annual increase since September 2008. Prices rose 0.8% from the prior month. Both exceeded economists' expectations. The report has investors weighing the possibility that the Federal Reserve may have to alter its asset purchase plan and course for interest rates.

In stocks, Tesla Inc. exported 55% of the 25,845 vehicles made at its Shanghai plant in April, according to figures released Wednesday by the China Passenger Car Association. 

Meanwhile, mega-cap tech stocks including Apple Inc. and Microsoft Corp. remained in focus as investors continued to rotate out of growth stocks and into value plays. 

A Centers for Disease Control and Prevention panel on Wednesday will consider Pfizer Inc. and BioNTech SE’s COVID-19 vaccine for use in adolescents. 

In earnings, Wendy’s Co. reported strong same-store sales and hiked its full-year earnings forecast due to increased optimism its breakfast menu, announced just before lockdowns went into effect last year, will bring customers into restaurants.  

In commodities, West Texas Intermediate crude oil jumped above $66 per barrel and gold slid $3.80 to $1,832.30 an ounce.