U.S. stocks fall as inflation runs hotter than expected

U.S. stocks fell Tuesday after a government report showed inflation was worse than expected last month, with the S&P 500 slipping 0.4% and the Nasdaq dropping 0.7%. The report showed prices for groceries, electricity and other living costs rose more than economists forecast, potentially pushing the Federal Reserve to hike its main interest rate in December. Fed Governor Christopher Waller hinted at a larger half-point increase, and Treasury yields jumped to 4.99% as traders raised rate-hike expectations. Homebuilder stocks fell sharply on higher mortgage rate concerns, while Nvidia dropped 5.5% amid an investigation into its CEO. AI-related stocks were mixed, and Anthropic filed to sell stock at a valuation near $1.3 trillion. European and Asian markets mostly rose, with South Korea's Kospi jumping 4.4%.