Sam Boughedda

Investing.com — Technology stocks plunged Wednesday following data that showed U.S. consumer costs rose at the fastest pace in over 31 years. It is this data that fueled concerns about inflation. 

According to Labor Department, the consumer price index increased 6.2% over the 12-month period ending October. That’s the biggest yearly move higher since November 1990.

On Tuesday, producer prices data revealed a rise for October. Consumers pay two-thirds the U.S. economy through higher manufacturing costs. Manufacturers pass these increased costs on to their customers.

Rivian was the big news of the day. Its public debut soared by 30% in its first day. Rivian’s market value exceeded that of General Motors Company and Ford Motor Company (NYSE). 

The Wednesday losses were also due to data showing that factory gate prices in China reached a 26 year high in October. Reuters reports, while economists working for the German government predicted that the current increase in inflation would continue into 2022.

These are the three factors that may affect the markets tomorrow when the U.S. bond market closes for Veteran’s day:

1. Rivian’s IPO is still a stunner

Rivian Automobile Inc (NASDAQ:) was able to make a strong start in public life on Wednesday. Its shares soared on the debut of one of its largest IPOs. American electric vehicle manufacturer Inc priced their offering at $78. The stock traded its first time at $106.75. This was almost 37% more than the IPO price. Investors will likely continue to follow it trading on Thursday to check if the stock can rise.

2. Inflation scares the market

People are starting to believe that the “transitory” inflation the Federal Reserve keeps talking about is not so transitory after-all. On Wednesday, the Labor Department reported on consumer prices. This could have an impact on whether or not the central banks decides to accelerate their efforts at reducing stimulus.

3. Concerning fuel prices…

The Energy Information Administration reported that U.S. oil stocks rose less than anticipated in the last week. This was against the expectations of 2.1 million barrels. The stockpile of distillate (which includes diesel) fell 2 million barrels. Oil is currently trading at $81 per barrel. As Americans are facing higher heating costs, the Biden administration said that it would work to reduce rising fuel prices. 

— This report was contributed by Reuters