Stock Market Today: Stocks Fall After a Hotter CPI Print, and a Fed Governor Floats a Half-Point Hike
Wall Street gave back part of Monday's surge on Tuesday morning after October inflation came in hotter than expected, Treasury yields climbed, and investors repriced the Federal Reserve's December meeting.
AUSTIN — Stocks fell on Tuesday morning after the October Consumer Price Index came in hotter than expected, reversing part of Monday's sharp rebound and pushing Treasury yields higher, according to market reports read by the desk this cycle.
TipRanks reported that as of 9:55 a.m. Eastern, the Dow Jones Industrial Average was down 0.59 percent, the S&P 500 was down 0.52 percent and the Nasdaq Composite was down 0.38 percent, while a BayStreet market update put the early losses at 238.56 points on the Dow, to 52,151.19, and 27.83 points on the S&P 500, to 7,522.11. Reuters reported that futures had turned lower within minutes of the 8:30 a.m. inflation release, with Nasdaq 100 futures down 0.92 percent at 8:32 a.m.
The driver was this morning's inflation report: consumer prices rose 0.4 percent in October and core prices rose 0.3 percent, both above the forecasts economists had set, with no annual rate published because last year's shutdown prevented the October 2025 data collection. The 10-year Treasury yield rose about 12 basis points to 4.981 percent in TipRanks' check, and BayStreet put it at 4.99 percent, up from Monday's 4.87 percent.
Ahead of the report, Federal Reserve Governor Christopher Waller said the central bank should consider a larger 50-basis-point rate hike if inflation worsens, according to the reports — a remark that framed Tuesday's trading ahead of the Fed's December 9 meeting. Monday's session had closed sharply higher, with the Dow up 2.15 percent, the S&P 500 up 2.35 percent and the Nasdaq up 2.74 percent. The desk files the verified close in tonight's cycles.
