NEW YORK (AP) — U.S. stocks slumped after a Federal Reserve official raised the possibility of delivering none of the cuts to interest rates this year that Wall Street has been banking on, if inflation worsens.

The S&P 500 dropped 1% Thursday for its worst day since February. It erased an earlier gain of nearly 1% that had brought it to the cusp of its record.

The Dow swung 1.4% lower, and the Nasdaq composite lost 1.4%. Markets were already unsettled before Minneapolis Fed President Neel Kashkari expressed concern about inflation.

Friday's U.S. jobs report could shake the market further.

Oil prices jumped, and Treasury yields sank.