US Consumer Prices Rose 0.4 Percent in October

The Labor Department said the overall consumer price index, or CPI, rose 0.4% in October, above 0.3% forecasts, following September's 0.6% jump.

Inflation Details

The core CPI, excluding food and energy, rose 0.3%, overshooting 0.2% forecasts, after September's 0.3% increase.

Market Reaction

Futures for the Dow Jones Industrial Average erased their early gains while tech futures sold off Tuesday after the report. Ahead of Tuesday's open, Dow futures were virtually flat, as S&P 500 futures lost 0.4%. Nasdaq-100 futures sold off 1.1% in recent morning trades.

West Texas Intermediate crude futures dropped to around $84.45 a barrel. The 10-year Treasury yield moved higher to 4.94%. Also, bitcoin fell to around $73,800.

Among exchange traded funds, the Invesco QQQ (QQQ) lost 1.1%, while the State Street SPDR S&P 500 (SPY) was down 0.5% before Tuesday's opening bell.

Why it matters

The hotter-than-expected CPI reading came as markets reacted to inflation data that exceeded economist forecasts, contributing to declines in equity futures and Treasury yield movement.

---

Sources

• investors.com: Stock Market Today: Dow Reverses On Surprise CPI Inflation Report; Anthropic Sets IPO Price Range | Investor's Business Daily
• ft.com: Subscribe to read

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.