US Inflation Hits 3.8%, Stocks Slide as Prices Jump Fastest Since 2023

U.S. stocks ended mostly lower Wednesday after reports showed inflation rose at its fastest pace in nearly two years. The S&P 500 fell 0.16%, and the Nasdaq dropped 0.71%. The Dow Jones Industrial Average bucked the trend, rising 0.11%. The sell-off came as annual consumer inflation accelerated to 3.8% in April. That is the highest reading since early 2023. Higher inflation raises concern that the Federal Reserve will keep interest rates high for longer. That pressure weighs on growth stocks, especially in the tech-heavy Nasdaq. Traders now watch for the Fed’s next move as borrowing costs stay elevated.