01:47 PM EDT, 04/10/2024 (MT Newswires) -- US equity indexes slid intraday Wednesday as hotter-than-expected consumer inflation prompted markets to sharply scale back expectations for a June interest rate cut by the Federal Reserve.

The S&P 500 declined 1.1% to 5,154.4, while the Nasdaq Composite fell 1% to 16,143.5. The Dow Jones Industrial Average was 1.2% lower at 38,411.1 after midday. All sectors were in the red, led by real estate and utilities.

In economic news, the consumer price index rose 0.4% sequentially in March, the Bureau of Labor Statistics said Wednesday, matching February's growth rate but ahead of the 0.3% consensus, according to a Bloomberg-compiled survey. Annually, the rate accelerated to 3.5% from 3.2% in the previous month, higher than the estimate of 3.4%.

The core inflation rate, which excludes the volatile food and energy components, rose 0.4% in March, unchanged from the prior two months but above the 0.3% expected. On an annual basis, core inflation came in at 3.8%, above the 3.7% market forecast.

"This will likely not sit well with the (Fed), and may push more policymakers into the two rate-cut camp," Oxford Economics said in a note. "The central bank's data-dependent mantra could force it to keep rates high for longer."

The probability that the Federal Open Market Committee will begin easing monetary policy in June plummeted to 19% on Wednesday from 56% on Tuesday, according to the CME FedWatch Tool. The likelihood of rates remaining unchanged jumped to 81% versus 43% on Tuesday.

The 10-year US Treasury yields soared 17 basis points to 4.54%, while the two-year yield surged 20 basis points to 4.95%.

West Texas Intermediate crude oil rose 0.7% to $85.83 a barrel.

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. Shares were down 1.2%.

Boeing's (BA) increased regulatory oversight and slower production could make the company's delivery and free cash flow targets difficult to achieve, Morgan Stanley said Wednesday while pointing to lower-than-expected first-quarter deliveries from the production line. Boeing's share price was down 3%.

Gold fell 0.5% to $2,350.90 per troy ounce, while silver rose 0.3% to $28.08 per ounce.