WASHINGTON (dpa-AFX) - Following the substantial rally seen to start the week, stocks have moved mostly lower over the course of the trading day on Tuesday. The major averages have all moved back to the downside but remain well off their recent lows.
Currently, the Dow is down 324.84 points or 0.6 percent at 52,064.91, the S&P 500 is down 45.58 points or 0.6 percent at 7,504.36 and the Nasdaq is down 182.16 points or 0.7 percent at 25,070.98.
The pullback on Wall Street comes following the release of a closely watched Labor Department report showing consumer prices increased by more than expected in the month of October.
The Labor Department said its consumer price index rose by 0.4 percent in October after climbing by 0.6 percent in September. Economists had expected consumer prices to rise by 0.3 percent.
The report said core consumer prices, which exclude food and energy prices, climbed by 0.3 percent in October, matching the increases seen in the two previous months. Core prices were expected to edge up by 0.2 percent.
The Labor Department noted it is not able to provide data on the annual rate of consumer price growth due to the government shutdown in October 2025.
The hotter-than-expected inflation data had led to renewed concerns about the outlook for interest rates ahead of the Federal Reserve's monetary policy meeting next month.
CME Group's FedWatch Tool is currently indicating an 85.9 percent chance the Fed will raise rates by a quarter point at its December meeting.
Before the release of the data this morning, Fed Governor Christopher Waller said he is 'leaning toward' a rate hike in December and would support 'more robust action' if inflation exceeds estimates.
'In that case, I believe a 50 basis point hike in the policy rate should be considered at the December meeting,' Waller said at a conference in London. 'Hiking only 25 basis points would put our credibility at risk, a risk I am not eager to take.'
Sector News
Gold stocks have pulled back sharply along with the price of the precious metal, with the NYSE Arca Gold Bugs Index plunging by 5.4 percent after ending the previous session at its best closing level in well over a month.
Substantial weakness is also visible among interest rate-sensitive housing stocks, as reflected by the 2.9 percent slump by the Philadelphia Housing Sector Index.
Computer hardware stocks have also shown a significant move back to the downside, dragging the NYSE Arca Computer Hardware Index down by 1.7 percent.
Biotechnology, oil service and transportation stocks are also seeing weakness on the day, while most of the other major sectors are showing more modest moves.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index shot up by 2.9 percent, while South Korea's Kospi soared by 4.4 percent.
Most European stocks have also moved to the upside on the day. The French CAC 40 Index is up by 0.9 percent, the German DAX Index is up by 0.6 percent and the U.K.'s FTSE 100 Index is up by 0.1 percent.
In the bond market, treasuries have moved sharply lower in reaction to the hotter-than-expected inflation data. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 12.3 basis points at 4.987 percent.
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