Stock market today: Wall Street still reeling after hot US inflation data foils rate cut hopes WSB-TV Channel 2 [Video]

Wall Street continued to reel Thursday from a hotter than expected inflation report that sent stocks tumbling a day earlier.

Futures for the S&P 500 and the Dow Jones Industrial Average each fell 0.5% before the bell.

The Federal Reserve has been waiting for more evidence to show inflation is heading sustainably down toward its goal of 2%, but the past three months have shown that prices remain elevated. After an encouraging cooling last year, the fear now is that inflation may be stuck after January’s, February’s and March’s inflation reports all came in hotter than expected, along with data on the economy generally.

On Wall Street, that’s raised fears that the Federal Reserve will hold back on delivering the cuts to interest rates that traders are craving and have been betting on.

High interest rates work to undercut inflation by slowing the economy and hurting investment prices. The fear is that rates left too high for too long can cause a recession.

Traders sharply trimmed bets that the …