US stocks fall as inflation data boosts bets on larger Fed rate hike
Core CPI, which strips out volatile food and energy prices and is referred to as 'underlying inflation', came in at 0.3%, above the 0.2% consensus.
US stocks experienced a decline on Tuesday as inflation figures surpassed expectations, fueling speculation of a larger Federal Reserve rate increase. Nvidia's shares dropped for the second consecutive day, with investors concerned over CEO Jensen Huang's future following an internal probe into spying allegations. US Treasury yields and major currencies saw a rise, while gold prices fell.
The US Consumer Price Index rose 0.4% in October, outpacing estimates, and core CPI increased to 0.3%, higher than the 0.2% consensus. This prompted a potential half-point Fed rate hike at their upcoming meeting. Lower oil prices have alleviated some inflation concerns, but the Fed is now more worried about the rising cost of labor for services like plumbing and electrician services.
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- Fed's Waller puts a half-point December rate hike on the table if inflation runs hot qz.com
