US stocks sell off after fresh CPI data shows highest inflation since 1982

• The Nasdaq fell 2% on Thursday after CPI data revealed the highest rise in prices since 1982.
• A 7.5% jump in the consumer price index led to the market pricing in six Fed rate hikes this year.
• The 10-Year US Treasury yield surged to 2.0% for the first time since 2019.

US stocks tumbled on Thursday after fresh CPI data revealed inflation is rising at a pace not seen since 1982.

The Consumer Price Index rose 7.5% in the year through January, surpassing the median economist estimate of 7.3%. The index also rose 0.6% month-over-month, suggesting that the recent Omicron wave added to inflationary pressures.

With a continued rise in inflation, bond yields surged and the increased likelihood of more rate hikes by the Federal Reserve. The 10-Year US Treasury Yield hit 2% for the first time since 2019, while the market is now pricing in up to six rate hikes by the Fed this year.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Thursday:

• S&P 500: 4,537.69, down 1.08%
• Dow Jones Industrial Average: 35,518.89, down 0.7% (249.17 points)
• Nasdaq Composite: 14,261.18, down 1.58%

"With wages, commodity prices and supply chain strains all contributing, the Fed will need to respond aggressively with a very real prospect that they choose to signal their resolve with a 50bp March move," ING Economics said in response to the CPI data.

While the Nasdaq plunged almost 2% on Thursday, the Dow Jones Industrial Average saw a more muted decline thanks in part to Disney, which surged 7% after it reported better-than-expected first quarter earnings.

Developments in the metaverse continued on Thursday, with luxury hand-bag maker Gucci buying a plot of virtual land in The Sandbox to create themed experiences.

McDonald's is also getting in on the metaverse, signaled by its filing of a trademark for a virtual restaurant that will actually deliver food to your home.

On Wednesday, Roblox and the NFL launched "NFL Tycoon" ahead of this weekend's Super Bowl. The metaverse hangout game is a virtual destination for NFL fans to build and manage their own sports team.

West Texas Intermediate crude oil fell as much as 0.36% to $89.34 per barrel. Brent crude, oil's international benchmark, fell as much as 0.33% to $91.23 per barrel.

Gold fell as much as 0.37% to $1,829.80 per ounce. The yield on the 10-year Treasury rose 6 basis points to 1.99%.