US stocks plummet on inflation shock

U.S. stocks plunge as inflation data dampens hopes of rate cuts

U.S. stocks experienced a sharp decline on Tuesday after the release of worse-than-expected inflation data, causing investors to question the optimistic outlook that had propelled Wall Street to record-breaking highs. In early trading, the S&P 500 dropped 1.3% as traders pushed back their predictions for when the Federal Reserve will implement interest rate cuts. The report on higher-than-anticipated inflation may have dashed hopes that the first cut could arrive in March. The Dow Jones Industrial Average fell 420 points, or 1.1%, from its previous record, while the Nasdaq composite sank even further, losing 1.8%.