Inflation fears send investors scurrying for the exit

Stocks fell sharply Wednesday as investors fretted over data showing that U.S. consumer prices rose at their fastest rate last month since 2008, raising concerns about surging inflation. 

The Dow slid 681 points, or 2%, to close at 33,588. The broader S&P 500 stock index fell 89 points, or 2.1%, to 4,061, while the tech-heavy Nasdaq ended the day down 2.7%. The S&P 500, which like the Dow reached a record high on May 7, is flirting with its worst weekly drop since October. Investors have been worrying that inflation could return after being absent for many years as the economy revs out of the recession brought on by the pandemic. Federal Reserve officials and other economists have said moderate inflation may actually be a good thing in a recovery.