Stocks Tumble as Hot Inflation Data Damps Hopes for Fed Rate Cuts
• Wall Street falls sharply due to hotter-than-expected inflation report that dims hopes for a June rate cut • S&P 500 drops 0.9%, Dow loses 422 points, Nasdaq falls 0.8%; yields surge as traders bet on fewer Fed rate cuts this year • Price increases in January, February and March suggest inflation may be sticky, not just a temporary blip • Higher inflation raises worries that the Fed will hold off on rate cuts the market wants, instead staying the course • Critics said stocks were overvalued unless rates fell further or profits rose; Delta earnings top forecasts but outlook cautious