By Sam Boughedda
Investing.com -- Tech stocks tumbled on Wednesday after data showing U.S. consumer prices rose the most in 31 years, stoking fears that inflation is not backing down.
The consumer price index rose 6.2% in the 12 months through October, according to the Labor Department. That’s the biggest yearly move higher since November 1990.
On Tuesday producer prices data showed a rise in October. Manufacturers are passing higher costs to consumers, whose spending contributes two-thirds of U.S. economic output.
The big deal of the day was the public debut of electric truck maker Rivian, which soared 30% on its first day and had a market value greater than that of Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM).
Wednesday's losses also came after data showed Chinese factory gate prices hit a 26-year high in October, Reuters reported, while economic advisers to the German government said they expected the current rise in inflation to continue well into 2022.
Here are three things that could affect markets tomorrow, when the bond market is closed in the U.S. for Veteran's Day:
1. Rivian IPO still dazzles
Rivian Automotive Inc (NASDAQ:RIVN) made a strong start to life as a public company on Wednesday, with its shares soaring on its debut in what was one of the largest IPOs ever. The American electric vehicle company priced its offering at $78 and the stock's first trade was at $106.75, almost 37% above the IPO price. Investors will no doubt continue to watch it trade on Thursday to see if it can keep rising.
2. Inflation spooks market
People are starting to believe that the “transitory” inflation the Federal Reserve keeps talking about is not so transitory after-all. The Labor Department's report on consumer prices on Wednesday could influence the central back to move more quickly on pulling back stimulus.
3. Speaking of fuel prices...
U.S. oil stockpiles rose less than expected in the latest week, the Energy Information Administration said on Wednesday, 1 million barrels against expectations for 2.1 million barrels. Distillate stockpiles, which include diesel and heating oil, declined by 2 million barrels. Oil trades at around $81 a barrel. The Biden administration has said it will work to rein in rising fuel prices heading into the winter months as Americans face higher costs for heating their homes.
-- Reuters contributed to this report