As investors took in a hotter-than-expected January inflation report which showed prices decreasing more slowly than predicted, US stocks dropped on Tuesday, falling back from recent highs.

After the release of the inflation data, the three major indices all finished lower by over 1%.

The S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) both fell 1.4%, or around 500 points, following the benchmark’s failure to maintain its historic run above 5,000 on Monday.

With a 1.8% closing decrease, the tech-heavy Nasdaq Composite (^IXIC) led the day’s steep falls.

The Consumer Price Index (CPI) report released on Tuesday showed “core” prices, excluing the volatile food and energy categories, rose 0.4% in January, the highest monthly increase since April 2023. Prices rose 3.1% overall, which was less than economists had predicted but still more than the 3.4% annual growth seen in December.

The price of bitcoin (BTC-USD) remained below $50,000 in other markets following the market leader’s astounding return to the psychological $50,000 level for the first time since 2021. The rally was driven by enthusiasm for the idea of investors pouring into the cryptocurrency through investment exposure in ETFs.

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