Wall Street drops as strong April inflation data fuels rate hike bets

US consumer prices jump more than expected in April; Electronic Arts gains on upbeat revenue forecast

Wall Street's major averages fell on Wednesday after stronger-than-expected inflation data stoked fears of tighter monetary policy to combat a possibly longer period of inflation.

The Labor Department's data showed U.S. consumer prices increased by the most in nearly 12 years in April as booming demand amid a reopening economy pushed against supply constraints. Excluding the volatile food and energy components, it soared 0.9%, the largest gain since April 1982.

U.S. money markets moved fully to price in a 25 basis point interest rate hike by December 2022 after the data.

"There is uncertainty over how long inflation is going to exist within