Red hot U.S. inflation reading dials up interest rate worries on markets

U.S. stocks were under pressure Tuesday after a report showed inflation was worse across the country last month than economists expected. The S&P 500 fell 0.7 per cent and gave back some of its big rally from the day before. The Dow Jones Industrial Average was down 333 points, or 0.6 per cent, as of 10:45 a.m. Eastern time, and the Nasdaq composite was 0.8 per cent lower.U.S. inflation was higher than expected last month, signaling that rising prices that powered sweeping Democratic victories in last week’s midterm elections will continue posing challenges for the White House and the Federal Reserve.The consumer price index rose 0.4 per cent from September to October, the Labor Department said Tuesday, down from 0.6 per cent the previous month. The government did not report a yearly inflation rate because last year’s government shutdown meant no data was released for October 2025. Story continues below advertisement Excluding the volatile food and energy categories, core prices rose 0.3 per cent, the same as the preceding month. Both figures were a tenth of a point higher than forecast.Pressure from the bond market undercut stocks following the discouraging report on inflation...