U.S. stocks sank across the board after hotter-than-expected inflation data dimmed hopes of a June rate cut by the Federal Reserve.
The Dow Jones Industrial Average fell more than 500 points following the release of the data on Wednesday morning before paring some losses. The Nasdaq Composite and S&P 500 were also lower.
Treasury yields spiked, with the 10-year hitting 4.5% for the first time in 2024, and the 2-year yield hovering just below 4.9%.
The consumer price index rose 3.5% annually in March and 0.4% vs. the prior month. Both exceeded economists' forecasts. Core prices rose 3.8% annually. Rent costs rose 5.7%, while grocery prices climbed 1.2% on an annual basis. The price of lettuce was up 5.8% while beef and veal soared 7.6%.
Seventy-eight percent of market participants expect the Fed to hold rates steady at the June meeting, while 54% expect the same in July, as tracked by the CME's Fed Watch Tool.