04:57 PM EDT, 04/10/2024 (MT Newswires) -- US benchmark equity indexes declined Wednesday after a hotter-than-expected inflation report prompted markets to slash their expectations of an interest rate cut in June while the Federal Reserve released minutes from its most recent monetary policy meeting.

The Nasdaq Composite fell 0.8% to 16,170.4, while the S&P 500 was down nearly 1% at 5,160.6. The Dow Jones Industrial Average fell 1.1% to 38,461.5. Real estate led sector decliners, while energy was the only gainer.

In economic news, the consumer price index rose 0.4% sequentially in March, the Bureau of Labor Statistics said, matching February's growth rate but ahead of the 0.3% consensus in a survey compiled by Bloomberg. Annually, the rate accelerated to 3.5% from 3.2% in the previous month, higher than the estimate of 3.4%. The core inflation rates also topped market estimates.

The probability that the Federal Open Market Committee will begin easing policy in June plummeted to 16% on Wednesday from 56% a day ago, according to the CME FedWatch Tool.

Members of the Federal Reserve's monetary policy committee indicated last month that they needed to see more evidence of continued disinflation before pivoting to interest rate cuts, while some participants said geopolitical events could drive prices higher, minutes from the committee's March 19-20 meeting showed Wednesday.

"The minutes were overshadowed by the hotter-than-expected March CPI data, which will only validate the committee's concerns over the persistence of high inflation," BMO said in a note. "With inflation clearly heading in the wrong direction, the Fed might need to remain on hold for longer."

The 10-year US Treasury yields soared 18 basis points to 4.55%, while the two-year yield surged 23 basis points to 4.97%.

West Texas Intermediate crude oil rose 1.1% to $86.19 per barrel. Commercial crude stockpiles in the US rose more than expected last week while distillate fuel inventories posted a sizable gain, government data showed Wednesday.

In company news, Delta Air Lines (DAL) reported first-quarter results above market estimates buoyed by robust travel demand, which the carrier is continuing to see in the ongoing three-month period. Its shares closed 2.3% lower.

Gold fell 0.5% to $2,351.2 per troy ounce, while silver was flat at $28 per ounce.