Stocks slipped on Wednesday as investors digested the latest consumer inflation report in an attempt to understand the health of the broader economy.
The broad-market index traded 1.3% lower, while the Dow Jones Industrial Average lost 687 points, or 1.69%. The Nasdaq Composite shed about 0.77%.
UnitedHealth Group, Goldman Sachs and Amgen dragged the Dow lower.
The consumer price index report released Wednesday reflected a 0.2% increase in prices last month, with the annual inflation rate coming in at 2.5% — its lowest level since February 2021. The CPI was expected to increase 0.2% in the previous month and 2.6% from a year ago, according to the Dow Jones consensus estimate.
Month over month core CPI — which does not include volatile food and energy prices — came out slightly hotter-than-expected, however.
Investors are still betting on a widely anticipated interest rate cut at the Federal Reserve's Sept. 17-18 meeting. Traders priced in an 85% chance that the Federal Open Market Committee will approve a 25 basis point interest rate reduction, according to the CME Group's FedWatch measure.
The new data comes as investors grapple with seasonal headwinds. September has been the worst month for the S&P 500 over the last 10 years, averaging a loss of more than 1% during that time. The broad-market index has also posted a loss in September in the last four years.