Tuesday marked the worst trading day since March 2023, due to a market sell-off sparked by hotter-than-expected CPI data. After a period of positive gains throughout the market, Wall Street is wondering if equities are due for a drop-off or if this was just a bump in the road. Roth MKM Chief Economist and Macro Strategist Michael Darda joins Yahoo Finance to discuss the recent sell-off and what it could imply for equity markets going forward. "The January CPI report was a bit of a shocker, and there's a measure that the Fed pays attention to that they call 'super core inflation' — essentially that's just tracking non-energy services, excluding housing or shelter — and that number rose pretty rapidly," Darda comments on the inflation data's biggest takeaways for the Federal Reserve. "That is really not what the Fed wants to see, and on the back of a very strong non-farm payroll report just a few weeks ago, aided in pushing those rate cut expectations backward, and we just heard Fed Chair Powell recently say March is probably not going to be the meeting for the first rate cut, and now you can see that market even priced out the cut in May or have gone very far in doing so." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino

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