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Dow Drops 1,300 Points

  • Stocks fell sharply on Tuesday after a key August inflation report came in hotter than expected, hurting investor optimism for cooling prices and a less aggressive Federal Reserve.
  • The Dow Jones Industrial Average slid 1,009 points, or 3.1%. The S&P 500 dropped about 3.4%, and the Nasdaq Composite sank 4.3%. More than 490 stocks in the S&P 500 fell, with Facebook-parent Meta dropping 8% and Caesars Entertainment losing 7.3%.
  • The drop erased most of the recent rally for stocks, though the S&P 500 is still up more than 1% from its Sept. 6 close of 3,908 and well above its mid-June levels, when it fell below 3,700.
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