Nasdaq ends sharply lower as hot inflation data stirs rate-hike worries

The Nasdaq ended sharply lower on Wednesday, driven by concerns over rising inflation and potential interest rate hikes. The index fell 3.52%, its biggest one-day percentage drop since June 2020.

Investors are worried that high inflation could lead the Federal Reserve to raise interest rates more aggressively, which could slow economic growth and hurt corporate profits.

The sell-off was broad-based, with all 11 sectors in the S&P 500 index falling. Tech stocks, which are sensitive to interest rate changes, were among the biggest losers.

The decline comes as investors await the release of the U.S. consumer price index (CPI) on Thursday, which is expected to show a further increase in inflation.