Dow tumbles 1,200 points for worst day since June 2020 after hot inflation report (2 min read)
Stocks fell sharply after the release of the CPI report revealing inflation higher than expected. The three major indexes S&P 500, Nasdaq Composite, and the Dow finished at 4.32%, 5.16%, and 3.94% lower respectively at market close. Tech stocks tumbled the most as this sector is more sensitive to rate changes. The sell-off erased nearly all the gains the market saw in the past week, bringing it back to the level seen earlier this month. As this is one of the last reports the Fed will see, it could lead to aggressive rate hikes longer than some investors anticipated.