Wall Street slides as US inflation tops forecasts, fueling rate hike fears

Wall Street indices fell on Wednesday after US September inflation came in higher than expected at 3.7% annually versus the 3.6% forecast, reigniting concerns about further Federal Reserve interest rate hikes. The core inflation rate also exceeded estimates at 2.6% yearly, while oil prices rose on Middle East tensions. The Nasdaq dropped 1.88%, its biggest daily decline since July, with technology stocks hit hardest by higher borrowing cost fears. Market odds for an October Fed rate increase jumped to 37% from 22% before the data. Bank of America fell 4.8% after reporting results, while the 10-year Treasury yield briefly approached 5.3%.