The Dow Jones Industrial Average plummeted 509.29 points, or 1.3%, to 38,374.88.
The S&P 500 slumped 61.58 points, or 1.2%, to 5,148.33.
The NASDAQ sank 188.5 points, or 1.2%, to 16,118.16.
Bank shares, including JPMorgan Chase declined 1%, and industrial shares like Honeywell, slipped 1.9% on worries higher rates will start to suffocate the economy. Once red-hot tech stocks Microsoft and Apple also pulled back 1% each.
All sectors in the broad market index were red for the day. Real estate fell around 4%, leading sector losses for the day. The S&P 500 had been treading water in April in anticipation of this inflation report following a roaring start to the year where the benchmark rallied 10% for its best first quarter gain in five years.
The CPI in March rose 0.4% for the month and 3.5% year-over-year, versus estimates of a 0.3% monthly increase and 3.4% year-over-year, according to economists polled by Dow Jones. Core CPI, which excludes volatile food and energy prices, accelerated 0.4% from the previous month while rising 3.8% from a year ago, compared to estimates for 0.3% and 3.7%, respectively. CPI in April increased at a 3.2% annual pace for all items.
Prices for the 10-year Treasury dropped sharply, raising yields to 4.51% from Tuesday’s 4.36%. Treasury prices and yields move in opposite directions.
Oil prices gained 10 cents to $85.33 U.S. a barrel.
Gold prices docked five dollars to $2,357.40 U.S. an ounce.