Wall Street Slides Amid Inflation Metrics and Political Developments

Wall Street's indexes fell after inflation numbers tempered expectations of a deep rate cut by the Federal Reserve. Political shifts, particularly Kamala Harris' debate performance, also influenced market sentiments. The consumer price index increased marginally, causing financial sectors to decline sharply. Meanwhile, lithium and solar stocks saw substantial gains.

Wall Street's main indexes tumbled on Wednesday as new inflation data dampened hopes for a significant interest rate cut by the Federal Reserve. The political landscape shifted as Kamala Harris' performance in a televised debate boosted her odds of winning the U.S. presidency.

The U.S. Labor Department reported a slight rise in consumer prices by 0.2% for August, mirroring July's increase. Underlying inflation, however, remained persistent, making a 50-basis-point rate cut by the Fed unlikely.

Investor sentiment was further influenced by political events. Harris' debate success against Republican Donald Trump resulted in market shifts, with stocks like cryptocurrency, blockchain-related shares, and Trump-favored industries declining, while solar stocks expected to benefit from a Harris administration rose significantly.

(With inputs from agencies.)