NEW YORK—U.S. stocks fell sharply Tuesday after disappointing inflation data made investors confront the bitter possibility that interest rates will stay high for months longer than they were hoping.
The S&P 500 tumbled 1.4 percent as traders delayed forecasts for when the Federal Reserve will deliver the cuts to interest rates they crave so much. The hotter-than-expected inflation report may have put the final nail into hopes that the first cut could arrive in March. It also pushed many forecasts past May into June, according to data from CME Group.
