Dow tumbles more than 500 points on hot inflation data

Stocks took a dive on Tuesday as inflation eased somewhat but stayed stubborn in January. The Dow Jones Industrial Average slid 531 points, or 1.4%, while the S&P 500 declined 1.4% and the Nasdaq Composite lost 1.7%. The Consumer Price Index revealed that prices rose by 3.1% for the 12 months ended in January, with a monthly increase of 0.3%. Economists expected inflation to ease to 0.2% from December and slow to 2.9% annually. Traders anticipate the Federal Reserve to cut its benchmark lending rate in June or July.