US yields climb, stocks fall as inflation data boosts chances for larger Fed rate hike
SPY•SPY•SPY•SPY•October CPI rose 0.4%, above economists’ 0.3% forecast, boosting bets on a half-percentage-point Fed rate hike next month. Treasury yields climbed and US stocks fell.
US Treasury yields rose and Wall Street stocks fell after hotter-than-expected October inflation boosted the chances of a half-percentage-point Federal Reserve rate hike next month. The Consumer Price Index rose 0.4%, compared with economists’ 0.3% forecast, while core CPI increased 0.3%, above the 0.2% consensus.
The two-year Treasury yield rose 18.44 basis points to 4.731%, and the 10-year yield gained 12.55 basis points to 4.988%. The S&P 500 fell 0.38%, the Nasdaq Composite lost 0.74% and the Dow dropped 0.31%, according to preliminary closing data. Nvidia shares fell sharply for a second straight day.
The dollar index rose 0.56%, while spot gold fell 2.62% to $4,030.56 an ounce. Brent crude settled down 1.2% at $91.49 a barrel and US West Texas Intermediate fell 0.9% to $86.04.
