Stock Market Today: Dow Sinks 1,276 Points After Alarming CPI Report

Hope that inflation might have peaked was dashed with this morning's CPI report, sending stocks to their worst day since June 2020.

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(Image credit: Getty Images)

Stocks were crushed Tuesday as the latest inflation update showed consumer prices remained elevated in August – dashing hopes that price pressures had peaked.

Looking at the numbers, the Labor Department this morning said its consumer price index (CPI), which tracks what consumers are paying for goods and services, was up 8.3% year-over-year in August. While this was down from the annual increases seen in both June (+9.1%) and July (+8.5%), the core CPI, which excludes more volatile energy and food prices, was up 6.3% from the year-ago period – more than the 5.9% jump seen in each of the two prior months. And month-over-month, core CPI accelerated 0.6%, much quicker than July's 0.3%.

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Karee Venema was long AAPL and AMZN as of this writing.

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Karee Venema
Senior Investing Editor,

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.