US stocks fell across the board in a broad sell-off after a hotter-than-expected inflation report could put the Federal Reserve's plan to cut interest rates at risk.

The Dow Jones Industrial Average fell more than 500 intraday points or 1.4% and is on track for its worst session in 11 months.

Clock Security Last To change To change %
Me: DJI DOW JONES AVERAGES 38198.19 -599.19 -1.54%

The benchmark erased almost half of its gains for 2024.

The consumer price index for January rose 3.1% on an annual basis, economists predicted inflation would reach 2.9%. The producer price index, scheduled for Wednesday, will also be closely monitored.

JANUARY CONSUMER INFLATION ARRIVES HOT

“We continue to expect the FOMC to leave the Fed funds rate unchanged at the March meeting and begin the easing cycle in May,” Jan Hatzius, chief economist at Goldman Sachs, said in a note to clients on Tuesday.

While more than 91% of market participants agree with Hatzius, the majority, 62%, do not expect any movement at the May meeting, according to CME's Fed Watch Tool.

Dow Jones Industrial Average

The S&P 500 and Nasdaq Composite fell 1.3% and 1.5%, respectively.

Clock Security Last To change To change %
SP500 S&P 500 4947.81 -74.03 -1.47%
Me:COMP NASDAQ COMPOSITE INDEX 15658.702949 -283.84 -1.78%

Real estate, utilities and finance followed the sell-off in the broader market, while energy and healthcare companies fell the least.

Clock Security Last To change To change %
XLRE SELECT THE SECTOR SPDR CONFINCIA IMOBILIÁRIO SELECT THE SECTOR S 38.29 -0.12 -0.31%
XLU UTILITIES SELECT SECTOR SPDR ETF 59.70 -1.29 -2.12%
45 FINANCIAL SELECTION SECTOR SPDR ETF 39.26 +0.18 +0.46%
XLE SPDR ENERGY SELECTION SECTOR ETF 84.23 +0.92 +1.10%
XLV HEALTHCARE SELECTION SECTOR SPDR ETF 144.21 +0.20 +0.14%

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