U.S. stocks fall after October inflation exceeds forecasts

U.S. stocks fell Tuesday after October inflation rose more than economists expected, lifting concern that the Federal Reserve could keep raising interest rates. The Bureau of Labor Statistics reported that the consumer price index increased 0.4% from September, against forecasts of 0.3%. Core CPI, which excludes food and energy, rose 0.3%, compared with expectations of 0.2%. The figures are monthly changes, not annual inflation rates.

At the Associated Press’s reporting point, the S&P 500 was down 0.4%, the Dow Jones Industrial Average 0.3% and the Nasdaq Composite 0.7%. The market figures were trading snapshots, not closing levels. Treasury yields also rose as traders increased expectations for further Federal Reserve tightening. The 10-year Treasury yield reached 4.99%, up from 4.88% late Monday, according to the Associated Press account.

Federal Reserve Governor Christopher Waller said before the inflation release that a 0.3% monthly increase in the underlying measure would warrant considering a half-percentage-point rate increase at the December meeting, twice the usual quarter-point move. The reported core CPI increase met that threshold. Waller’s statement described a...