Wall Street slips after US prices rise 0.4% in October; markets now fully expect a Fed rate hike in December
The Nasdaq fell about 0.7% and the S&P 500 about 0.4% as inflation came in above forecasts. Nvidia dropped about 5.5%.
- Core CPI: +0.3%
- Nasdaq: about -0.7%
- Fed meets: 8–9 Dec
The inflation surprise
US consumer prices rose 0.4% in October, against forecasts of 0.3%. Core prices, which leave out food and energy, rose 0.3%, also above estimates. Food was up 0.5% and energy 0.7%. Housing costs made up more than 30% of the overall increase. There is no official yearly figure, because data for October 2025 was never collected during last year's government shutdown.
How markets reacted
Traders now fully expect a quarter-point Fed rate hike at the 8–9 December meeting. The Dow fell about 0.3%. The 10-year US Treasury yield went above 5% during the day, and Nvidia fell about 5.5%.
Why India watches this
Higher US rates and yields can pull foreign money out of emerging markets like India, and they tend to strengthen the dollar against the rupee.
