US Stocks Fall as Hot Inflation Fuels Fed Rate Hike Fears

US stocks fell Tuesday after October inflation came in higher than expected, raising fears the Federal Reserve will hike interest rates more aggressively. The Dow Jones closed down 158 points. The Dow fell 0.30% to 52,231.89, the S&P 500 dropped 0.38%, and the Nasdaq lost 0.74%. The Consumer Price Index rose 0.4% monthly, above forecasts, while core CPI also exceeded expectations, intensifying concerns about Fed policy. Fed Governor Christopher Waller suggested a December rate hike, possibly by 0.50 percentage points if inflation pressures persist. Investors now fully price in at least a 0.25-point increase, up from 84% Monday, while tech stocks led declines with Nvidia falling 5.4%.