(CNBC) -- Stocks fell on Wednesday, stepping back earlier gains as investors continued to digest the latest U.S. inflation data.
The Nasdaq Composite fell 3%, the S&P 500 slipped 1.4% and the Dow Jones Industrial Average traded down 260 points or 0.8%.
Advertisement - story continues below
“Everyone wants energy and food and labor costs to all come down, but at the same time, our mechanism for doing that is to increase interest rates,” said Aviva Investors’ Susan Schmidt. “You’re working at countermeasures and it’s worrisome for investors because they’re trying to figure out how this impacts business overall and that’s why I think you’ve seen such whipsaw action in the major indices.”