US stocks tumble to biggest loss in two years after inflation data

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Broad sell-off grips Wall Street as investors predict more aggressive action from the Federal Reserve

New York — A broad sell-off sent US stocks reeling on Tuesday after a hotter-than-expected inflation report dashed hopes that the Federal Reserve could relent and scale back its policy tightening in the coming months.

" is not a surprise given the rally running up to the data,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. The report points to “very persistent inflation and that means the Fed is going to remain engaged and raise rates”, Nolte added. “And that’s an anathema to equities.”

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