ASX set to slip after Wall Street's worst day since July on inflation fears

US stocks suffered their worst day since July after a report showed inflation accelerated last month, raising expectations the Federal Reserve will hike interest rates. The S&P 500 fell 1.1 percent, while the Nasdaq composite sank 1.9 percent. The inflation report showed consumer prices rose 3.7 percent annually, up from August's 3.4 percent and worse than the 3.6 percent economists expected. The 10-year Treasury yield jumped to 5.23 percent, near its highest level since 2002, as traders raised bets on a Fed rate hike to 39 percent. The Australian sharemarket is set to fall 0.2 percent at the open, following the ASX's 0.6 percent loss on Wednesday. Higher fuel prices from the war with Iran and continued consumer spending are keeping inflation elevated, while Bank of America and State Street dropped after weak earnings reports.