Stocks 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 lost 156.49 points to 52,233.26.
The S&P 500 index slid 28.97 points to 7,520.97
The tech-heavy NASDAQ slumped 187.26 points to 25,223.26.
Nvidia dragged down the three major averages, falling 5%. The stock sat out Monday’s tech-fueled rally following CEO Jensen Huang’s admission over the weekend to an affair with an alleged Chinese spy.
The consumer price index rose 0.4% in October, above the gain of 0.3%, which 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 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.
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 47 cents to $86.38 U.S. a barrel.
Gold prices fell $72.10 to $4,042.40 U.S. an ounce.
