US stocks fell on Tuesday, sliding away from recent highs as investors digested a hotter-than-expected January inflation report that showed prices cooling slower than forecasts anticipated.
The S&P 500 (^GSPC) sank about 1.3%, after the benchmark faltered Monday in its bid to keep its historic rally above 5,000 going. The Dow Jones Industrial Average (^DJI) fell nearly 1%, losing grip of a record closing high, while the tech-heavy Nasdaq Composite (^IXIC) dropped about 2%.
When removing the volatile food and energy categories, Tuesday’s Consumer Price Index (CPI) release showed “core” prices increased 0.4% in January, their largest monthly gain since April 2023. On a headline basis, prices increased 3.1%, above economist estimates but a deceleration from a 3.4% annual gain in December.
Read more: What the Fed rate decision means for bank accounts, CDs, loans, and credit cards
Also in…
