US stock indices declined on Tuesday, Nov 10, after hotter-than-expected Oct inflation data heightened fears that the Federal Reserve could raise interest rates yet again in December. Additionally, fresh commentary from Fed Governor Christopher Waller signaled that a rate hike was likely and also did not rule out a larger increase.
The S&P 500 fell 0.7% to 7,497 whereas it had logged its best day since April just yesterday, while Dow Jones Industrial Average slipped 0.4% to 52,168. Nasdaq 100 also declined 1.20% to 27,571.
Inflation data came in hot, with US consumer prices rising 0.4% in October, exceeding Bloomberg estimates. Core CPI, which excludes food and energy prices, also advanced 0.3%, compared with estimates of 0.2%.
Waller, then, said in a speech that he expected a rate hike in December, adding that a 0.50% increase was also possible as inflationary pressures persisted.
The 10-year US Treasury yield also climbed more than 8 basis points to 4.95% following the CPI data release.
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