Stocks fell on Tuesday as a hotter-than-expected inflation report for January raised doubts that Federal Reserve policymakers will cut interest rates multiple times this year. The Dow Jones Industrial Average dropped over 500 points, while the S&P 500 Index and Nasdaq Composite lost 1.4% and 1.8%, respectively.

Here's how the market settled on Tuesday:

S&P 500 Index (SPY  ): -1.37% or -68.67 points to 4,953.17

Dow Jones Industrial Average (DIA  ): -1.35% or -524.63 points to 38,272.75

Nasdaq Composite Index (QQQ  ): -1.80% or -286.95 points to 15,655.60

Driving Market Moves: Consumer prices rose at a faster-than-expected rate in January, the Labor Department reported Tuesday, squashing some hopes that the Federal Reserve's high interest rates are over.

The consumer price index (CPI) increased 0.3% for the month and 3.1% year-over-year, ticking down slightly from December's annual clip of 3.4%. Excluding more volatile food and energy prices, core CPI rose 0.4% in January and 3.9% compared to a year ago -- both topping analyst estimates for 0.3% and 3.7%, respectively.

On the Earnings Front: Coca-Cola (KO  ) reported better-than-expected fourth-quarter earnings on Tuesday as higher prices helped the beverage giant offset waning North America demand. The company saw North American volume decline by 1%, compared to rival PepsiCo's (PEP  ) North American demand falling 6% in the fourth-quarter as higher costs from inflationary pressures impacted demand.

For 2024, Coke expects organic revenue growth between 6% and 7% and a 4% to 5% increase in comparable earnings per share. For its current first-quarter, Coke expects a 4% headwind from currency exchange rates on its comparable revenue, alongside a 8% decline in earnings per share from currency change impacts.

Shopify (SHOP  ) shares fell over 13% after the e-commerce company reported better-than-expected fourth-quarter earnings but issued mixed forward guidance. For the first-quarter, the company expects revenue to grow at a "low-twenties percentage rate."

In Single-Stock News: JetBlue (JBLU  ) shares rallied over 20% on Tuesday after activist investor Carl Icahn took a nearly 10% stake in the air carrier late Monday. According to regulatory filings with the U.S. Securities and Exchange Commission (SEC), Ichan plans to engage in discussions "regarding the possibility of board representation," at JetBlue.

The airline said in a statement: "We are always open to constructive dialogue with our investors as we continue to execute our plan to enhance value for all of our shareholders and stakeholders."

For Wednesday: Market participants will respond to another batch of earnings from companies including Airbnb (ABNB  ), Lyft (LYFT  ) and Zillow (ZG  ).