US stocks fell on Tuesday 10 November 2026 after hotter-than-expected inflation data unsettled investors and raised bets that the Federal Reserve will raise interest rates by more than expected next month.

The Dow Jones Industrial Average fell 302.62 points, or 0.57%, to close at 52,087.13. The S&P 500 fell 53.31 points, or 0.71%, to 7,496.63, and the Nasdaq Composite fell 227.31 points, or 0.90%, to 25,025.83.

The falls came a day after all three indexes had gained more than 2% in a broad rebound, with the Dow rising 1,104.02 points on Monday as oil prices fell and technology shares recovered from last week’s sell-off.

October CPI beats forecasts

The US Consumer Price Index rose 0.4% in October after advancing 0.6% in September, the Labor Department’s Bureau of Labor Statistics said on Tuesday. Economists polled by Reuters had forecast a rise of 0.3%.

Excluding food and energy, so-called core CPI increased 0.3% last month after gaining 0.3% in September. Economists had forecast a rise of 0.2%.

The Bureau of Labor Statistics did not publish year-on-year inflation readings because last year’s federal government shutdown prevented the collection of consumer price data in October 2025, leaving no comparison base.

December rate rise back in focus

The stronger-than-expected figures shifted market bets on the Federal Reserve’s December meeting, which is scheduled for 8-9 December. Traders moved bets on another pause to zero and sent odds of a half-point increase to 14.7%, according to the CME FedWatch Tool.

Federal Reserve Governor Christopher Waller had said earlier in the day in London that a core reading of 0.3% for October would prompt him to consider a half-point rise at the December meeting.

Bond yields rose after the report. The yield on the 2-year Treasury note rose to 4.73%, while the yield on the 10-year note rose to 4.98%.

Investors had waited for the inflation test

Investors had treated Tuesday’s inflation report as the week’s main test for the market, because it was the last consumer price reading before the Federal Reserve meets in December. A hotter reading was expected to support the case for higher interest rates, which can weigh on share prices by raising borrowing costs.

Before the report, futures had pointed to a mixed open, with Dow futures higher and Nasdaq futures lower. The inflation figures took the wind out of the morning’s outlook, and stocks stayed lower through the session.

Attention will now turn to the rest of the week’s US economic data, including producer prices on Friday, for further clues on whether the Federal Reserve will raise rates again at its December meeting.

This article reports market figures as published on 10 November 2026. Share prices and bond yields can move quickly, and the figures here are a record of the day’s trading, not financial advice.