US stocks closed lower on Tuesday due to concerns over rising commodity prices and a labor shortage.
This came despite assurances from the US Federal Reserve that price increases in the short term may turn into inflation in the long term.
While the three main indices on Wall Street trimmed their losses from their lowest levels for the session, sales were distributed in various market sectors.
Economic data from the US Labor Department released today showed that jobs available at US companies jumped to a record high in March, another sign of labor shortages hinted at by the disappointing jobs report released on Friday.
The report suggests that the labor supply is not keeping pace with a jump in demand, while employers are scrambling to find qualified workers.
The Dow Jones industrial average ended the trading session down 472.21 points, or 1.36 percent, to 34,270.61 points, while the benchmark Standard & Poor’s 500 Index fell 36.33 points, or 0.87 percent, to close at 4,152.10 points.
The Nasdaq composite index closed down 12.43 points, or 0.09 percent, to 13,389.43 points.
The market volatility index, a measure of investor anxiety, reached its highest level in two months.
Source: Reuters