Dow Suffers Biggest Loss in 11 Months as Early Fed Rates Cuts Look Increasingly Unlikely

Following the release of Tuesday’s higher-than-expected inflation data, bets by traders for a rate reduction in May decreased. Wall Street’s main indexes tumbled Tuesday on the news, with the Dow Jones Industrial Average particularly affected, posting its biggest one-day percentage drop in nearly 11 months. The S&P 500, Nasdaq, and the Dow all dropped over one percent. Markets are taking the news hard, as it puts a nail in the coffin of hopes for early Fed rate cuts.