NEW YORK: Wall Street stocks tumbled in early trading Wednesday after an unexpectedly lofty inflation reading dimmed the odds for near-term interest rate cuts.

The much-anticipated data showed US consumer prices up 0.4 percent in March, above the expected level, translating into a 3.5 percent annual consumer price index.

About 10 minutes into trading, the Dow Jones Industrial Average was down 1.2 percent at 38,404.60.

The broad-based S&P 500 dropped 1.1 percent to 5,154.14, while the tech-rich Nasdaq Composite Index declined 1.0 percent to 16,146.74.

US Treasury bond yields jumped after the data, reflecting expectations that the Federal Reserve will push interest rate cuts later in 2024 or into 2025.

"Inflation is now going up. How can the Fed cut rates if inflation is going up?" asked Adam Sarhan of 50 Park Investments.

"The very thought of a rate cut in 2024 is in jeopardy, if not off the table," said Sarhan, adding that the market could still go up in 2024 without interest rate cuts if the economy is strong.

Among individual companies, Delta Air Lines rose 3.8 percent after reporting better than expected earnings and forecasting a record second quarter thanks to continued robust travel demand.

 - AFP