Dow tumbles more than 400 points on hot inflation data

Stocks plummeted on Tuesday as new data showed that inflation eased slightly but remained persistent in January. This comes after the Dow Jones Industrial Average reached a record high close on Monday, while the S&P 500 pulled back from its own record high. The Dow fell 490 points or 1.3% on Tuesday morning, with the S&P 500 and Nasdaq Composite both declining by 1.1%. Data from the Bureau of Labor Statistics revealed that the Consumer Price Index rose by 3.1% for the 12 months ending in January, with a monthly increase of 0.3%. Economists had anticipated lower figures. Traders now expect the Federal Reserve to cut its benchmark lending rate in the coming months.