The Dow Jones index fell 524 points Tuesday, erasing nearly half its gains this year in its worst plunge in 11 months. The selloff was triggered by a higher-than-expected inflation report.
The Labor Department Tuesday morning announced that prices climbed 0.3% last month, or up 3.1% from this time last year. That was higher than expected and enough to push investors to question whether the Fed might delay interest rate cuts.
The S&P 500 was hit with heavy selling too, with nearly 90% of stocks there affected as the index dropped 1.4%.
