Wall Street takes a tumble as hot inflation numbers further dash hopes of rate cuts

U.S. stocks are sinking Wednesday following new inflation data that showed prices accelerated for a third consecutive month. The hotter-than-expected report further dashed hopes for Fed rate cuts this year amid fears that progress may be stalling in taming elevated price levels.

The S&P 500 slumped 1.1% in early trading and is on track for one of its worst days of the year so far. The Dow Jones Industrial Average was down 451 points, or 1.2%, as of 9:35 a.m. EST, and the Nasdaq composite was 1.1% lower.

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