Tuesday began as a calm day on Wall Street, but markets swiftly turned negative after the Institute for Supply Management released data highlighting an unexpected surge in price pressures within the service sector for December.

The report reignited fears over persistent inflation and mounting concerns over the economic fallout from tariffs.

The ISM's Services PMI rose to 54.1% in December, surpassing expectations and marking the third-highest reading of 2024. This figure signals continued expansion in the services industry.

Yet the Prices Index, which reflects input costs for service providers, jumped sharply to 64.4%, up from 58.2% in November, significantly outpacing consensus estimates...