US Stocks Sell Off Ahead Of Inflation Data

Wall Street ended a see-saw session lower on Wednesday as market participants awaited inflation data for clues as to when the US Federal Reserve might tighten its dovish monetary policy.

The retail "meme stock" craze continued unabated.

All three major US stock indexes reversed earlier gains, but remained range-bound in the absence of any clear market catalysts.

"There's a lull period in terms of news," said Chuck Carlson, chief executive at Horizon Investment Services in Hammond, Indiana. "We're through earnings period and people are waiting for inflation numbers tomorrow, so you have a mixed market where the major averages aren't doing much of anything."

Heavily shorted meme stocks extended their social media-driven rally, with Aethlon Medical soaring 388.2 percent.

Reddit chatter also helped to lift shares of prison operator GEO Group and World Wrestling Entertainment 38.4 percent and 10.9 percent, respectively.

However, other meme stocks such as Clover Health, AMC Entertainment and Bed Bath & Beyond closed lower.

Retail volume has returned to its January peak, according to Vanda Research, as social media forums scramble to identify the next GameStop, the stock that kicked off the phenomenon.

US President Joe Biden changed course in ongoing negotiations to reach a bipartisan agreement on infrastructure spending after one-on-one talks with Senator Shelley Capito broke down.

Industrial stocks, which stand to benefit from an infrastructure deal, slid by 1 percent.

Washington lawmakers passed a sweeping bill designed to boost the United States' ability to compete against Chinese technology, providing funds for research and semiconductor production amid an ongoing chip supply drought. The bill now heads to the House of Representatives.

The Labour Department's consumer price index report due out Thursday will provide another take on inflation amid the recovery's demand/supply imbalance as investors determine whether inflationary pressures, as the Fed asserts, will be transitory.

The Dow Jones Industrial Average fell 0.44 percent, to 34,447; the S&P 500 lost 0.18 percent, at 4,220; and the Nasdaq Composite dropped 0.09 percent, to 13,912. (Reuters)