U.S. stocks open sharply lower, Dow drops more than 500 points after stronger-than-expected inflation

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U.S. stocks open sharply lower, Dow drops more than 500 points after stronger-than-expected inflation
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Dow down 500-plus points at Tuesday's opening bell following inflation update

U.S. stocks opened sharply lower Tuesday as investors reacted to a stronger-than-expected inflation reading for August. The Dow Jones Industrial Average DJIA, -2.31% dropped more than 500 points, or 1.7%, soon after the opening bell, while the S&P 500 SPX, -2.64% fell 2.2% and the technology-heavy Nasdaq Composite COMP, -3.29% dropped 2.9%, according to FactSet data, at last check. The U.S.

Bureau of Labor Statistics reported Tuesday that the consumer price index showed U.S. inflation rose 0.1% in August for an annual rate of 8.3%. Economists polled by The Wall Street Journal had forecast that CPI data would show a 0.1% drop in August. So-called core inflation, which excludes food and gas prices, rose 0.6% last month.

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