Wall Street slides as inflation accelerates, ASX set to fall

Wall Street stocks fell sharply as US inflation accelerated more than expected, with the S&P 500 dropping 1.1 per cent and the Nasdaq sliding 1.6 per cent, while Australian futures pointed to a 0.4 per cent decline at the open. US consumer prices rose 3.7 per cent year-over-year in September, up from August's 3.4 per cent and above the 3.6 per cent economists forecast, driven by higher fuel costs linked to the war with Iran. The 10-year Treasury yield climbed to 5.23 per cent, near its highest level since 2002, as traders raised bets on Federal Reserve interest rate hikes. Netflix announced layoffs of about 6 per cent of its workforce, while Bank of America and State Street fell after weak earnings reports. Homebuilder stocks also declined due to elevated mortgage rates.