Wall Street retreated in Tuesday’s (Nov 10) trading session after October inflation data came in higher than expected, and hawkish comments from Federal Reserve officials fueled concerns over further interest rate hikes. The S&P 500 fell by approximately 0.7%, the Dow Jones dropped 249 points—or 0.5%—and the Nasdaq Composite declined by 0.9%.
The U.S. Consumer Price Index (CPI) rose 0.4% month-on-month in October, surpassing the 0.3% forecast. Core CPI also increased by 0.3%, exceeding the projected 0.2%, reinforcing the view that inflationary pressures have yet to fully subside.
Market sentiment was further dampened after Federal Reserve Governor Christopher Waller indicated that an interest rate hike in December would likely be necessary. He also left the door open for a larger, 50-basis-point increase should inflationary pressures remain elevated.
The technology sector served as a primary drag on the market. Micron Technology and Marvell Technology each fell by approximately 3%, Intel weakened by 2%, Qualcomm lost more than 1%, and Nvidia declined by over 3%.
This pullback follows a session in which the S&P 500 recorded its best daily performance since April. Investors have now turned cautious once again, as the combination of high inflation, the prospect of tighter interest rates, and pressure on the technology sector threatens to keep volatility high on Wall Street.