Stocks Plunge Over 500 Points as Hot Inflation Data Damps Rate Cut Hopes
• Stocks fell sharply on Tuesday, with the Dow dropping over 500 points, after hotter-than-expected consumer inflation data • The Dow had its worst day since March 2023, but major indexes remain up slightly for the year • Consumer Price Index rose 3.1% year-over-year in January, cooling from 3.4% in December but above economist forecasts • The odds of the Federal Reserve keeping interest rates steady through June jumped after the report, denting expectations of rate cuts • Crude oil futures extended their rally to a seventh straight session, supported by geopolitical risks and expectations of seasonal demand pickup