Dow Falls 1.2% On Surprise Inflation Data; Snowflake Soars 37% On Earnings

💡 Dow drops on inflation surprise, Snowflake surges on earnings beat

The Dow Jones Industrial Average fell 1.2% on Wednesday, led by a surprise increase in inflation data. The Federal Reserve delivered a hawkish surprise on Wednesday, signaling that interest rate cuts remain further away than markets had hoped.

Fed Chair Jerome Powell told reporters that the central bank needs "greater confidence" that inflation is sustainably declining before it will consider easing policy.

The Consumer Price Index (CPI) rose 0.4% in April, exceeding the 0.2% estimate and pushing the annual inflation rate to 4.9%. $SPY fell sharply as stock traders repriced the timing of the first rate cut from March to June.

Snowflake Surges On Earnings

Snowflake Inc. ($SNOW) shares soared 37% on Wednesday after the cloud software company reported stronger-than-expected earnings. Revenue grew 76% to $445 million, beating estimates of $394 million.

Dow Falls On Inflation Surprise

The Dow Jones Industrial Average fell 1.2% on Wednesday, led by a surprise increase in inflation data. The Federal Reserve delivered a hawkish surprise on Wednesday, signaling that interest rate cuts remain further away than markets had hoped.

Markets React To Inflation Data

The 10-year Treasury yield surged to 4.8% in the aftermath, its highest level since October 2023. $TLT fell sharply as bond traders repriced the timing of the first cut from March to June.

What It Means for Investors