Share this @internewscast.com

Stocks dropped on Tuesday after hotter-than-expected inflation data for January spiked Treasury yields and raised doubts that the Federal Reserve would be able to cut rates several times this year, a key part of the bull case for the equity market.

The Dow Jones Industrial Average lost 524.63 points, or 1.35%, for its worst session since March 2023 on a percentage basis. At its lows, the 30-stock index sunk 757.52 points, or 1.95%. The S&P 500 slid 1.37%, while the Nasdaq Composite fell 1.8%.

The Russell 2000 also suffered, tumbling nearly 4% for its worst session since June 2022.

The consumer price index rose 0.3% in January from December. CPI was up 3.1% on an annual basis. Economists polled by Dow Jones expected CPI to have increased by 0.2% month over month in January and 2.9% from a year earlier.

Core prices, which exclude volatile food and energy components, rose 0.4% month over month and 3.9% from a year ago. Core CPI was expected to have increased 0.3% in January and 3.7% from a year earlier, respectively.

“This may well come as a easy excuse to take some of the froth out of the top of this market that’s been universally higher thus far this year,” said Art Hogan, chief market strategist at B. Riley Financial. “The CPI was, as reported today, just a touch hotter than expectations and proof positive that we’re not on a linear path, but we’re on a path headed lower.”

The 2-year Treasury yield jumped above 4.63%, and the 10-year yield topped 4.29% following the CPI data. Tech shares including Microsoft and Amazon, which have steered the market run to record highs as rates declined, led the losses in trading Tuesday. Microsoft slid 2.2%, while Amazon fell 2.1%.

In corporate news, JetBlue Airways spiked 20% after activist investor Carl Icahn reported a nearly 10% stake in the airline. Toymaker Hasbro lost 3% after missing analyst expectations for the fourth quarter. Shares of Avis Budget Group slipped 22% on the back of disappointing fourth-quarter revenue.

Share this @internewscast.com
You May Also Like
Top Iranian cleric issues 'fatwa' against Trump, Netanyahu

Prominent Iranian Leader Declares Religious Edict Against Trump and Netanyahu

The leading Shiite cleric in Iran declared a religious decree targeting President…
Wind turbine blade crashes into traffic on busy Northeast interstate

Wind Turbine Blade Collides with Traffic on Bustling Northeast Interstate

One person is reported injured after a wind turbine blade broke loose…
Chicago budget: Mayor Brandon Johnson, officials looking for ways to close projected $1.2B budget shortfall

Chicago Budget: Mayor Brandon Johnson and Officials Seeking Solutions for $1.2 Billion Deficit

CHICAGO (WLS) — Chicago’s budget director has stated that 2026 is anticipated…
Chilling 'coincidence' of Idaho shooting sends Internet sleuths into overdrive

Idaho Shooting’s Eerie ‘Coincidence’ Triggers Online Detectives’ Frenzy

On Sunday, a tragic ambush in Idaho targeted firefighters, coinciding with the…
New Illinois laws in effect on July 1, 2025 include Chicago minimum wage, gas tax hike, hotel shampoo bottle changes

Illinois Implements New Laws on July 1, 2025: Changes to Chicago’s Minimum Wage, Gas Tax Increase, and Hotel Shampoo Bottle Regulations

CHICAGO (WLS) — Several new laws take effect in Illinois on July…
Hundreds stuck in disabled Amtrak train for hours in Florida

Amtrak Train Breakdown Strands Hundreds for Hours in Florida

More than 140 people were transferred to buses in order to get…
Law enforcement vehicles passing a roadblock.

Grandfather of Idaho Shooting Suspect Wess Roley, 20, Speaks Out as Disturbing New Details About His Past Emerge

THE grandfather of a suspected gunman who lit a wildfire to lure…
Woman shopping for sausages in a grocery store.

Nationwide recall of popular sandwich filler after officials find incorrect meat type

SEVERAL kinds of lunch meats were recalled across the US after officials…
Meet the stunning model making her Wimbledon debut — against Aryna Sabalenka

Introducing the Gorgeous Model Set to Face Aryna Sabalenka in Her First Wimbledon Appearance

She’s got style, she’s got grace, and Carson Branstine also has one…
Barry Morphew extradited to Colorado to face murder charges in wife's 2020 disappearance

Barry Morphew Returned to Colorado to Stand Trial for Murder Charges in Connection with Wife’s Disappearance in 2020

Barry Morphew has been transported from Arizona back to Colorado following his…
Luckin Coffee opens first US stores in NYC

Luckin Coffee debuts in the United States with new NYC locations

Luckin Coffee teased the arrival of the New York City stores in…
Iran acknowledges death toll from Israel's strike on notorious Evin prison

Iran Confirms Casualties Following Israeli Attack on Infamous Evin Prison

Iran acknowledged on Sunday that an Israeli strike on Tehran’s notorious Evin…