Markets took a sharp downward turn on Wall Street after U.S. government data Wednesday showed that inflation accelerated last month. Futures for the S&P 500, Dow Jones Industrial Average and Nasdaq all fell at least 1% less than an hour before the opening bell.

Wall Street held relatively firm after President Trump’s latest tariff escalation and after the Federal Reserve hinted interest rates may not change soon.

"If it escalates into bilateral tariffs, we estimate an 8% hit to EPS assuming unitary elasticity," Bank of America analysts said.