Wall Street dips with hot inflation countering cooling oil
SPY•US stocks fell after October consumer prices rose 0.4% month over month, while oil prices declined and the 10-year Treasury yield rose to about 4.99%. The Nasdaq was down about 0.6%, the biggest drop among the major indexes.
1. Stocks and yields
Wall Street’s three major indexes opened lower on Tuesday as hotter-than-expected inflation raised expectations of more aggressive Federal Reserve rate hikes. The indexes pared losses as oil prices fell; the Nasdaq was down about 0.6%, while the 10-year Treasury yield rose to about 4.99%.
2. Inflation and oil
The Consumer Price Index rose 0.4% in October from the previous month. Core inflation, excluding food and energy, rose 0.3% for the third month in a row. US crude traded near $85 a barrel, down more than 1% on the day, compared with its October 20 high of $110.48.
3. Sector moves
Materials was the weakest S&P 500 sector, while consumer discretionary led gainers. Only consumer discretionary and communication services were rising among the 11 major sectors.
