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US stocks plunged after CPI hit three year high sparking fresh Fed rate fears and oil driven inflation worries
International
Published on 12 May 2026
The CPI jump changes the rate outlook fast
US stocks fell sharply after the CPI inflation report showed a 3.8% rise, the highest in three years. The Dow slid over 307 points, while the S&P 500 and Nasdaq posted losses. Treasury yields rose and the dollar strengthened, with tech stocks retreating as investors priced in the possibility of longer Federal Reserve rate cuts being delayed amid rising oil prices and Iran related tensions.
- US CPI rose to 3.8%, the highest level in three years
- Dow, S&P 500 and Nasdaq all sank as yields climbed
- Stronger dollar and pressured tech stocks reflected longer Fed fears
- Oil price and Iran tensions added to inflation anxiety
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times