Dow tumbles 475 points, S&P 500 suffers worst day since January as inflation woes erupt

Stock markets dealt with severe losses due to escalating concerns surrounding inflation. The Dow Jones Industrial Average fell 475 points, marking one of its worst performances this year. Meanwhile, S&P 500 suffered its worst day since January, as investors fretted over potential monetary tightening by the Federal Reserve to curb rising inflation, an action which could slow economic growth.

These anxieties have been fuelled by recent data that has shown a surge in consumer prices, which have risen at their fastest pace in decades. This raised the fear that the cost of living will continue to increase while wages may not keep pace, affecting consumer spending which drives the U.S. economy.

In addition, supply chain disruptions, labor shortages and rising commodity prices are contributing to the inflation worries. These factors have created an uncertain climate for investors, leading to this turbulence in the market.