Indian stock markets are closed today on account of a festival. Global markets were exceedingly weak, after US Dow Jones plunged 681 points, or 1.99%, to witness its single-worst session since January. The S&P 500 on the other hand dropped 2.1%, its biggest one-day drop since February, while the Nasdaq Composite lost 2.6%.
One of the reasons for the sharp drop in stock markets, saw spike in inflation, which saw bond yields jump.
The US Labor Department reported that Consumer prices jumped 4.2% in the 12 months through to April, up from 2.6% in March and marking the biggest increase since September 2008.
It's likely that the US Fed Reserve may consider hiking interest rates, much earlier than anticipated. This put pressure on stocks, as interest rates and stocks tend to move in opposite directions.