Inflation report sends Dow to worst day since June 2020

U.S. stocks tumbled after the latest read on inflation came in higher than expected, raising prospects for a 100 basis point interest rate hike by the Federal Reserve later this month.

The Dow Jones Industrial Average lost almost 4%. The S&P 500 lost more than 4% for the worst day this year and the Nasdaq dropped 5%. Two-year Treasury yields rose to the highest since Thursday, November 1, 2007.

Oil futures lost ground after Labor Department data showed declining gasoline prices in August were offset by gains in rent and...