"Rising Inflation Sparks Stock Plunge and Fed Uncertainty"

US stocks tumbled as traders reacted to a hotter-than-expected inflation report, leading to a repricing of expectations for Fed rate cuts this year. The Dow Jones Industrial Average lost over 470 points, while bond yields surged higher. Inflation continued to accelerate in March, with consumer prices rising 3.8% year-per-year, higher than expected. The odds of a June Fed rate cut have been completely wiped off the table, and investors are now pricing in just a 6% chance of a significant rate cut this year. The latest CPI report has raised concerns that the Fed could keep interest rates higher for longer, leading to a 1.13% drop in the S&P 500 and a 1.24% drop in the Nasdaq Composite.