US Stocks Tumble as Inflation Report Shows Slower Price Cooling

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US Stocks,Inflation Report,Price Cooling

US stocks fell on Tuesday as investors reacted to a January inflation report that indicated prices were cooling slower than expected. The Dow Jones, S&P 500, and Nasdaq Composite all closed down more than 1% following the report. The Consumer Price Index (CPI) showed a 0.4% increase in core prices, the largest monthly gain since April 2023. Overall, prices increased 3.1%, surpassing economist estimates but slowing down from December's 3.4% gain.

US stocks tumbled on Tuesday, falling from recent highs as investors digested a hotter-than-expected January inflation report that showed prices cooling slower than forecasts anticipated. All three major indices closed down more than 1% on the heels of the report. The Dow Jones Industrial Average (^DJI) fell 1.4%, or around 500 points, while the S&P 500 (^GSPC) saw a similar drop, after the benchmark faltered Monday in its bid to keep its historic rally above 5,000 going.

The tech-heavy Nasdaq Composite (^IXIC) led the day's sharp declines, closing down 1.8%. 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 Decembe

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