Dow Ends Down 60, Nasdaq Down 29

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Heightened fears of inflation sent stocks sliding for a second straight session Tuesday as a key price index climbed to an 11-year high and an improving manufacturing sector raised the likelihood of another interest rate hike by the Federal Reserve, the Associated Press reports. Tech shares and small-caps were hardest hit.


While inflation-adjusted consumer spending rose 0.2 percent in June, the Commerce Department also reported that consumer prices are up 2.4 percent year over year, the highest rate of inflation since April 1995.


According to preliminary calculations, the Nasdaq composite index dropped 29.48, or 1.41 percent, to 2,061.99 as investors abandoned tech shares and small-cap issues, perceived to be risker in a rising rate environment. Other stock indexes also fell. The Dow Jones industrial average fell 59.95, or 0.54 percent, to 11,125.73, and the Standard & Poor’s 500 index lost 5.74, or 0.45 percent, to 1,270.92.


Read the full Associated Press story

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Winners & Losers


Hot Topic Inc. lost 16.9 percent and closed the day at $12.22 while Arrowhead Research lost 11.1 percent to close at $4.78 and DTS Inc. lost 7.3 percent to close at $17.26 a share.


Today’s winners were PeopleSupport Inc., which gained 23.5 percent and finished at $14.86, Reinhold Industries Inc., which gained 7.4 percent to close at $14.30 and Sketchers USA which finished up 4.1 percent and closed at $22.71 a share.

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