NEW YORK (MarketWatch) — U.S. stocks plunged sharply Wednesday, the Dow Jones Industrial Average losing more than 100 points, after consumer prices climbed more than analysts had expected, heightening worries that rising inflation could restrict future interest-rate cuts by the Federal Reserve.
Ahead of the opening bell, the government reported U.S. consumer prices rose a seasonally adjusted 0.4% last month. The core CPI, which excludes food and energy costs, climbed 0.3% in January, the biggest gain since June 2006. See Economic Report.