DJI: Dow Jones Tumbles Nearly 400 Points as Traders Pause Record-Setting Updraft

Markets pulled back Tuesday and all three US stock indexes dropped. Now focus shifts to looming inflation data for October.

• The Dow Jones Industrial Average DJI dropped 382 points, or 0.9%, as traders pared back their bets on risk assets for the first time since Election Day. The so-called Trump trade took a breather Tuesday with all three major stock averages pulling back from their record highs — the S&P 500 declined 0.3% on the day and the tech-heavy Nasdaq Composite slipped 0.1% for the session. Futures early Wednesday were in the red.
• The seemingly tireless rally in stocks appeared to show its first signs of exhaustion across the board. Tech companies in particular were among the biggest losers. Tesla TSLA fell 6% after it was enjoying special treatment thanks to the ties between Donald Trump and Elon Musk. Now that markets are in a better shape to ponder over things, new economic reports are expected to provide some more insight.
• The inflation report for October is knocking at the door. The consumer price index (CPI) is expected to show prices last month climbed 2.6% from last year, an increase from September’s 2.4% clip. Price pressures are a returning headache to investors and the Federal Reserve now that President-elect Trump has vowed to kick start the US economy by lowering taxes and increasing tariffs on imports.