Wall Street stocks fell on Wednesday after US inflation data topped estimates, dampening expectations for imminent interest rate cuts.

The much-anticipated data showed US consumer prices in March were up 0.4 percent from February and 3.5 percent from the year prior, both slightly above the expected level.

Major indices spent the entire day in the red.

"The stock market is trying to recalibrate what the world looks like if get two or fewer rate cuts this year," said Art Hogan of B. Riley Financial.

The Dow Jones Industrial Average dropped 1.1 percent to 38,461.

The S&P 500 shed 1.0 percent to 5,160, and the Nasdaq Composite Index declined 0.8 percent to 16,170.

The inflation data is heavily scrutinized by the Federal Reserve, which had confirmed plans last month for three interest rate cuts in 2024.

Minutes of the meeting released on Wednesday showed that "some" policy makers said recent inflation figures "should not be discounted," while others perceived the increase as the result of "seasonality."

But futures markets shifted on Wednesday following the inflation data and now see only a slim chance of a rate cut in June.

Among individual companies, Delta Air Lines fell 2.7 percent despite reporting better than expected earnings and forecasting a record second quarter thanks to continued robust travel demand.

Before Wednesday's report Delta shares had risen 18 percent in 2024. (AFP)