Most United States stocks slumped on Tuesday after the latest update on inflation hurt Wall Street's hopes for lower interest rates.

The S&P 500 fell 0.4%, though it's still near its all-time high set last week, as 90% of the stocks within the index fell. The Dow Jones Industrial Average dropped 436 points, or 1%.

The rate of annual inflation was 3.6% in June, up from 3.4% in May, figures from the Office for National Statistics showed Wednesday. That contrasted with the estimates of economists polled by The ...