"Inflation Data Sparks Stock Market Tumble: Dow Plunges 500 Points"

The stock market experienced a significant decline as all three major indices closed down more than 1% following a hotter-than-expected January inflation report, with the Dow Jones falling 1.4% and the S&P 500 and Nasdaq Composite dropping 1.8%. The report showed a 0.3% increase in consumer prices for January, with core prices rising 0.4%, the largest monthly gain since April 2023. The inflation data led to a sell-off in the market, with investors cutting rate bets and adjusting expectations for Federal Reserve interest rate cuts. Additionally, companies such as Airbnb and Lyft saw stock movements following their earnings reports, while Paramount Global announced layoffs and potential M&A rumors.