Wall Street Reacts to Surprising Inflation Data and Rate Hike Speculations

Wall Street opened lower following higher-than-expected inflation data, increasing speculation of an interest rate hike by the Federal Reserve. The Consumer Price Index saw a rise, impacting major indexes and triggering mixed market reactions. Delta Air Lines and other airlines saw declines amid forecasted revenue drops.

Wall Street faced a turbulent start as trading commenced Thursday, responding to inflation figures that surpassed expectations. The Consumer Price Index notched a monthly increase of 0.2% and an annual uptick of 2.4%, deviating from economists' predictions and fueling forecasts for a potential Federal Reserve rate hike.

Major indexes felt the pinch, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all experiencing declines. Sectors tied to interest rates, such as Real Estate and Information Technology, also saw downturns, evidencing the market's sensitivity to financial policy shifts.

Amid the financial fluster, Delta Air Lines shares dropped following disappointing quarterly revenue projections, alongside declines across other major airlines. With the beginning of the third-quarter earnings season and the Federal Reserve's moves, traders and investors are on high alert for further developments.

(With inputs from agencies.)