US stocks plummet as inflation hits highest level in 31 years

Investors rush to precious metals as safe haven against high volatility, record inflation

By Ovunc Kutlu

ANKARA (AA) - Major US stock indices closed sharply lower Wednesday after consumer prices climbed to their highest levels in 31 years.

The Dow Jones tumbled 240 points, or 0.66%, to end the day at 36,079 points with investment banking firms Goldman Sachs and Morgan Stanley falling more than 1.5% each.

The S&P 500 was down 38 points, or 0.82%, at 4,646 despite Tesla overperforming with a 4.3% gain.

The Nasdaq declined 263, or 1.66%, to 15,622. Coinbase dove 8.2%, while BlackBerry shed 6.3%.

The steep decline in indices came after the consumer price index (CPI) rose 6.2% in October -- the largest 12-month increase since November 1990. Core CPI jumped 4.6% year-on-year, its largest 12-month increase since August 1991.

Amid worries of high inflation, the VIX volatility index was up 5.3% at 18.73.

The yield on 10-year US Treasury notes soared 8.8% to 1.577%, while the US dollar index jumped 1% to 94.90.

Oil prices reversed course, with international benchmark Brent crude trading at $82.61 a barrel -- a 2.6% loss. US benchmark West Texas Intermediate crude fell 3.4% to $81.31.

Investors rushed to precious metals as a safe haven to preserve their assets from high volatility and record inflation. Gold added 1.1% to $1,851 an ounce and silver rose 1.4% to $24.65.

Despite extending its record to $69,000 at 9.15 a.m. EDT, the price of Bitcoin was down 3.7% at $64,850 shortly after the closing bell.

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