Dow drops more than 500 points after ‘ugly’ inflation report upsets market’s rate-cut expectations

January’s hotter-than-expected inflation report threw the financial market into a tailspin on Tuesday and upended investors’ expectations about how soon and by how much the Federal Reserve might start cutting interest rates. Stocks tumbled, with the Dow Jones Industrial Average DJIA finishing down by 524.63 points. Treasurys sold off aggressively, pushing yields to their highest levels since December. And the ICE U.S. Dollar Index DXY jumped 0.7% to a three-month high.January’s consumer-price-index report, out Tuesday morning, suggests that the road toward the Federal Reserve’s 2% goal for U.S. inflation is going to be…