Stocks Sink as Hot Inflation Data Dashes Hopes for Near-Term Fed Rate Cut

• Dow Jones Industrial Average plunged over 400 points after hotter-than-expected January inflation data, dimming hopes for a Fed rate cut next month • Consumer Price Index rose 3.1% year-over-year, higher than expected, indicating inflation remains sticky • Chances of a Fed rate cut in March are now unlikely; market odds shifted to rate cuts starting in June or later • Atlanta Fed President Raphael Bostic expects first of three 2023 rate cuts to happen in 4th quarter • "Shrinkflation" still an issue - paper products 34.9% more expensive per unit since 2019, 10.3% due to shrinking sizes