Wall St falls as hot inflation data fuels rate-hike jitters

Wall St falls as hot inflation data fuels rate-hike jitters

Wall Street's main indexes retreated on Tuesday, pausing a two-day rebound in tech shares, after a hotter-than-expected October inflation reading reinforced fears that the Federal Reserve could keep interest rates higher for longer. US consumer prices increased more than expected in October, rising 0.4 percent from the previous month, pushing the U.S. 2-year yield up 21.4 basis points for its biggest one-day jump since April last year. "Markets had been pricing out some of the Fed tightening in recent weeks. Now it's probably being forced to contemplate a bit more tightening," said James McCann, senior economist at Edward Jones. Traders are pricing in an almost 99 percent chance of a hike in December, according to the CME FedWatch tool. Among rate-sensitive sectors, real estate and utilities declined over 0.5 percent each, while tech led losses with a 1.8 percent drop. Nvidia slipped 6.3 percent, down for a second straight session, as investors grow concerned over CEO Jensen Huang's future at the chip giant after it initiated an internal probe into spy claims involving Chinese businesswom

In brief

Wall Street's main indexes retreated on Tuesday, pausing a two-day rebound in tech shares, after a hotter-than-expected October inflation reading reinforced fears that the Federal Reserve could keep interest rates higher for longer. Traders are pricing in an almost 99 percent chance of a hike in December, according to the CME FedWatch tool. Among rate-sensitive sectors, real estate and utilities declined over 0.5 percent each, while tech led losses with a 1.8 percent drop.

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