Stocks slump as inflation remains stubbornly high

U.S. markets fell sharply in opening trading Thursday after an unexpectedly hot inflation report strengthened the Federal Reserve's position on the need for more aggressive interest rate hikes.

The S&P 500 dropped 63 points, or 1.8%, to 3,513, as of 9:49 a.m. Eastern time. The Dow Jones Industrial Average fell 413 points, or 1.4%, and the Nasdaq composites sank 2.4%.

The S&P 500 is down 26% this year and close to a two-year low.