Stock futures fell on Tuesday after the August inflation report was reported to have risen more than expected.
Dow Jones Industrial Average futures fell 406 points, or about 1.3%. S&P 500 futures fell 1.7% and Nasdaq 100 futures shed 2.3%.
The August consumer price index report showed a higher-than-expected inflation reading. Headline inflation rose 0.1% month-on-month, even with falling gas prices. Core inflation rose 0.6% month-on-month.
On the other hand, economists even forecast a decrease of 0.1% for overall inflation, and an increase of 0.3% for core inflation.
This report is one of the last reports that will be used as a guide by the Fed ahead of the September 20-21 meeting, where members of the Fed are expected to increase interest rates by 0.75 percentage points for the third time in a row to reduce inflation. The unexpectedly high August report could cause the Fed to continue its aggressive hikes longer than some investors expected.
The US dollar index, which measures the US dollar against six currencies, reportedly strengthened 0.95% to trade at 109,142 after the CPI data was released.
