The S&P 500 fell on Tuesday after October inflation data came in hotter than expected and a key Federal Reserve official hinted at the possibility of a half-point rise in rates next month.
The Dow Jones Industrial index scaled back 238.56 points to 52,151.19.
The S&P 500 index regressed 27.83 points, or 2.3%, to 7,522.11.
The tech-heavy NASDAQ gave up 83.91 points to 25,169.23.
The consumer price index rose 0.4% in October, above the gain of 0.3% that economists polled by Dow Jones expected. Core CPI, which excludes volatile food and energy costs, increased 0.3% in October. Economists had called for a 0.2% advance on the month.
Annual figures were not be provided for Tuesday’s report because of the 2025 government shutdown.
The report followed Fed Governor Christopher Waller saying in a speech Tuesday that he thinks a December rate hike is likely. He also opened the door for a larger half-point increase next month as inflationary pressures persist.
Marvell Technology added more than 1%, while Advanced Micro Devices and Broadcom popped 5% and 3%, respectively.
Conversely, Nvidia — which sat out Monday’s rally following CEO Jensen Huang’s admission over the weekend to an affair with an alleged Chinese spy — fell 3%.
Prices for the 10-year Treasury slumped, raising yields to 4.99% from Monday’s 4.87%. Treasury prices and yields move in opposite directions.
Oil prices dumped $1.24 to $85.61 U.S. a barrel.
Gold prices fell $57.40 to $4,057.10 U.S. an ounce.
