Stocks plunge after hotter-than-expected inflation report

U.S. stocks plunged on Tuesday amid Wall Street's sudden realization that inflation isn't slowing as much as hoped.

A hotter-than-expected inflation report sent a thud through Wall Street and markets worldwide. The Consumer Price Index increased 8.3% in the past 12 months, as rising prices for food, shelter and medical care offset tumbling gasoline prices. 

While month's increase was lower than July's 8.5% jump, it was higher than the 8.1% economists had expected, showing prices remain uncomfortably high.