U.S. stocks post worst day since July as inflation accelerates

U.S. stocks fell sharply Wednesday, with the S&P 500 dropping 1.1% to its worst day since July, after a report showed inflation accelerated to 3.7% in September, exceeding economist expectations of 3.6%. The Nasdaq slid 1.9% as AI-related stocks like Nvidia fell 3.2% and CoreWeave tumbled 15.5%, pressured by rising bond yields. The 10-year Treasury yield briefly jumped above 5.32%, while traders raised odds of a Federal Reserve rate hike to nearly 35%. Inflation has worsened due to fuel price spikes linked to the war with Iran, with Brent crude rising to $106.06 per barrel. Bank of America dropped 4.8% on weak earnings and a $1.2 billion Treasury fine, while the Russell 2000 fell 1.9%.