Stocks Plunge as Inflation Data Spooks Investors

US stocks tumbled as investors reacted to a higher-than-expected inflation report for January. The Dow Jones Industrial Average fell by 1.4%, or around 500 points, while the S&P 500 and Nasdaq Composite also experienced significant drops.

The report showed that core prices increased by 0.4% in January, the largest monthly gain since April 2023. This news has raised concerns about the pace of inflation and its potential impact on interest rates. Investors are closely watching the Consumer Price Index for January, as it is expected to provide further insights into the inflationary pressures in the economy.

The stock market's performance in the coming months will likely depend on how the Federal Reserve responds to these inflationary concerns.