US stocks fell after consumer prices rose 0.4% last month, above economists’ 0.3% estimate, and Fed officials signaled further rate increases. The Dow fell 0.43%, the S&P 500 lost 0.64% and the Nasdaq dropped 1.15%.
The Consumer Price Index rose 0.4% last month, its third consecutive gain of at least 0.4% and above economists’ 0.3% estimate. Markets fully priced in a December rate increase of at least 25 basis points, up from an 84% probability on Monday. Fed Governor Christopher Waller said the Fed should raise rates in December and consider a half-point increase if inflation worsens.
The Dow Jones Industrial Average fell 223.12 points, or 0.43%, to 52,166.63; the S&P 500 lost 48.06 points, or 0.64%, to 7,501.88; and the Nasdaq Composite dropped 290.69 points, or 1.15%, to 24,962.44. The two-year Treasury yield rose 19.1 basis points to 4.738%. The S&P 500 technology sector fell more than 1%, with Nvidia down more than 5%.
Anthropic said its expected IPO could raise as much as $64.4 billion, valuing the company at up to $1.4 trillion on a fully diluted basis. Investors were also awaiting CoreWeave’s quarterly earnings after the market close; its shares fell 2.3% during the session.
