Why Apple Shares Are Diving

$Apple(AAPL.US)$ shares are trading lower by 3.33% to $157.98 Tuesday in sympathy with the broader market after August CPI readings showed inflation came in greater than expected. This has caused economic concerns and has raised expectations for more aggressive Fed policy.
What Happened?
According to data from the U.S. Bureau of Labor Statistics, the headline CPI rose 8.3% in August, down from 8.5% in July. The August CPI reading came in above average economist estimates of 8%.
Core inflation, which excludes volatile food and energy prices, was up 6.3% in August, above average economist estimates for a 6.1% gain.
The Labor Department said gasoline prices fell 10.6% month-over-month in August. Energy prices were down 5% and food prices climbed 0.8%.
Why It Matters:
Tuesday's CPI inflation reading comes on the heels of a strong August jobs report, showing the U.S. added 315,000 jobs last month. The U.S. unemployment rate came in at 3.7%. Wages were up 5.2% year-over-year in August, but inflation is still outpacing wage growth.
The latest CPI inflation data could act as a confirmation of recent indicators for the Fed and signal that another 0.75% rate hike is likely this month.
Tuesday's CPI print is the last major data release the Fed will have before making its next decision on rates, which is due at its upcoming meeting on Sept. 20.
"We are in this for as long as it takes to get inflation down," Fed vice chair Lael Brainard said in a statement last week.
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