Wall Street falls after hot inflation report burns hopes for a June rate cut WPXI [Video]

NEW YORK — (AP) — A washout on Wall Street sent stocks sinking Wednesday, as worries rose that what seemed like a blip in the battle to bring down inflation is turning into a troubling trend.

The S&P 500 dropped 0.9%, and the vast majority of stocks within the index fell. The Dow Jones Industrial Average tumbled 422 points, or 1.1%, and the Nasdaq composite sank 0.8%

Treasury yields also leaped in the bond market, raising the pressure on the stock market, after a report showed inflation was hotter last month than economists expected. It’s the third straight report to suggest progress on bringing high inflation down may be stalling. That hurts hopes that January’s and Februarys’ disappointing inflation data may not have been as bad as they seemed because of some technical reasons.

“There are still embers of inflation here and there in the economy,” said Joe Davis, chief global economist at Vanguard.

For shoppers, that’s painful because of the …