Hotter-than-expected inflation data sent the market spiraling today. The highly-anticipated August consumer price index (CPI) was the culprit, rising 0.1%, while the core CPI climbed 0.6% last month -- leading investors to expect sizable rate hikes from the U.S. Federal Reserve. The reading sent the two-year Treasury yield soaring to its highest level since November 2007.

The Dow finished the day with a seismic 1,276-point decline, its worst single-session drop since June 2020. The S&P 500 and Nasdaq also clocked their worst drops since June 2020. 

The Dow Jones Average (DJI - 31,104.97) dropped 1,276.37 points, or 3.9% for the day. Every Dow member finished the day in the red, with Travelers (TRV) landing at the top of the list with a 1.9% drop, while Boeing (BA) and Intel (INTC) had the worst days -- each losing 7.2%. 

The S&P 500 Index (SPX - 3,932.69) fell 177.7 points, or 4.3% for the day, while the Nasdaq Composite (IXIC - 11,633.57) lost 632.84 points, or 5.2%.

Lastly, the Cboe Volatility Index (VIX - 27.27) gained 3.4 points, or 14.2%. 

CPI Sends Commodities Lower

Oil prices snapped three-straight sessions of gains today, taking a breather after the hotter-than-expected August inflation data. October-dated West Texas Intermediate (WTI) crude fell 47 cents, or 0.5%, to settle at $87.31 a barrel on the New York Mercantile Exchange.

The CPI reading was at the center of gold's price action as well. December-dated gold fell $23.20, or 1.3%, to settle at $1,717.40 per ounce. 

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