U.S. stocks tumbled to a lower close Wednesday after hotter-than-expected inflation data threw cold water on hopes that the Federal Reserve would begin cutting interest rates as early as June.

All three major U.S. stock indexes veered sharply lower at the opening bell afterg the Labor Department's Consumer Price Index (CPI) report landed north of consensus, a reminder that inflation's road back down to the Fed's 2% target will remain a long and meandering one.

"The stickiness of inflation data caused a 'sell first ask questions later' mentality," said Ryan Detrick, chief market strategist at Carson Group in Omaha. "And that disappointment caused a push-back on not only the potential timing of the first rate cut but how many we’re going to get."

Minutes from the Fed's March policy meeting reflected concerns that inflation's progress toward that target might have stalled, and restrictive monetary policy may need to be maintained for longer than anticipated.

"Just a week ago (Fed Chairman Jerome) Powell hinted at three cuts," Detrick added. "One has to wonder if his opinion has changed after the stubborn data we continue to see."

Equity prices were further pressured by benchmark Treasury yields, which breached 4.5% to touch the highest level since November.

"Anything related to rates has clearly been hit hard today, from real estate to housing to small caps," Detrick said.

Financial markets have now priced in a dwindling 16.5% likelihood of a 25 basis point Fed rate cut in June, down from 56.0% just prior to the report's release, according to CME's FedWatch tool.

According to preliminary data, the S&P 500 lost 50.08 points, or 0.96%, to end at 5,159.83 points, while the Nasdaq Composite lost 139.49 points, or 0.86%, to 16,167.15. The Dow Jones Industrial Average fell 431.52 points, or 1.09%, to 38,452.15.

Investors will now focus on Thursday's producer prices report for a clearer picture of March inflation, and the unofficial kick-off of first quarter earnings season. On Friday, a trio of big banks — JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. — are slated to post results.

Analysts expect aggregate S&P 500 earnings in the first quarter to grow 5.0% from last year, according to LSEG data. That is lower than the 7.2% annual earnings growth for the quarter forecast on Jan. 1.

Most megacap growth stocks slipped with the exception of Nvidia Inc, which bucked the trend by gaining ground.

U.S.-listed shares of Alibaba advanced after the company's co-founder Jack Ma released a memo to employees on expressing support for the internet giant's restructuring efforts — a rare move from the billionaire who has spent the last few years away from the spotlight.