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Stocks tanked on Wednesday after March inflation data came in hotter than expected, likely pushing off interest rate cuts by the Federal Reserve that investors have been anticipating.
The 30-stock index plummeted 409.79 points, or 1.1%, to 38,473.88.
The S&P 500 slumped 48.21 points to 5,161.70.
The NASDAQ sank 158.98 points, or 1%, to 16,147.66.
Bank shares, including JPMorgan Chase and industrial shares like Caterpillar, both fell around 1% on worries higher rates will start to suffocate the economy. Once red-hot tech stocks Microsoft and Apple also pulled back more than 1% each.
All sectors in the broad market index were red for the day. Utilities fell more than 3%, leading sector losses for the day. The S&P 500 had been treading water in April in anticipation of this inflation report following a roaring start to the year where the benchmark rallied 10% for its best first quarter gain in five years.
The CPI in March rose 0.4% for the month and 3.5% year-over-year, versus estimates of a 0.3% monthly increase and 3.4% year-over-year, according to economists polled by Dow Jones. Core CPI, which excludes volatile food and energy prices, accelerated 0.4% from the previous month while rising 3.8% from a year ago, compared to estimates for 0.3% and 3.7%, respectively. CPI in April increased at a 3.2% annual pace for all items.
Prices for the 10-year Treasury dropped sharply, raising yields to 4.5% from Tuesday’s 4.36%. Treasury prices and yields move in opposite directions.
Oil prices gained 24 cents to $85.47 U.S. a barrel.
Gold prices docked four dollars to $2,358.40 U.S. an ounce.
