Tuesday morning saw a quick decline in stock futures after CPI for August came in higher than anticipated.
Dow Jones Industrial Average dropped 1.3%.
Nasdaq 100 futures dropped 2.3%.
S&P 500 futures dropped 1.7%.
Headline inflation increased 0.1% month over month. Monthly changes in core inflation were up 0.6%.
Core inflation, the one that matters the most, was expected to increase by 0.3%, and overall inflation to fall by 0.1%.
One of the last reports the Fed will read before their interest rates meeting on September 20-21. The Fed may extend its aggressive rate hikes longer than some investors had anticipated in light of the unexpectedly strong August report.