Key facts
- October CPI rose 0.4% month on month; economists polled by Reuters expected 0.3%.
- Core CPI rose 0.3% in October against a 0.2% estimate from economists polled by Reuters.
- The two-year Treasury yield rose 13 basis points to 4.68% and the 10-year 7.6 points to 4.94%.
- CME FedWatch data showed futures pricing an 85% chance of a 25-basis-point December rise.
- Fed Governor Christopher Waller said the central bank ought to raise short-term borrowing costs in December.
US stocks opened lower on Tuesday, November 10, 2026, after October consumer prices rose more than economists expected, a result that strengthened expectations the Federal Reserve will keep rates higher for longer.
The Labor Department's Bureau of Labor Statistics said the Consumer Price Index rose 0.4% month on month in October, after a 0.6% advance in September, above the 0.3% rise economists polled by Reuters had forecast. Core CPI, which excludes food and energy, rose 0.3%, above the 0.2% economists expected and matching the prior month's 0.3% gain. The BLS did not publish year-over-year readings because October 2025 data were not collected during a federal government shutdown, leaving no comparison base; annual consumer inflation was 3.7% in September.
At the open, the Dow Jones Industrial Average fell 226.5 points, or 0.43%, to 52,163.21. The S&P 500 fell 36.8 points, or 0.49%, to 7,513.09, and the Nasdaq Composite dropped 205.7 points, or 0.81%, to 25,047.448.
In rates, the US two-year Treasury yield rose 13 basis points to 4.68% and the 10-year yield rose 7.6 basis points to 4.94%. The dollar index rose 0.3% to 102.05 and gold fell 2% to $4,057 an ounce.
Futures settling to the Fed's policy rate priced an 85% chance of a 25-basis-point rise in December and a 15% chance of a 50-basis-point rise, according to CME FedWatch data. Fed Governor Christopher Waller said the central bank ought to raise short-term borrowing costs in December even if data show inflation cooled, and should consider a half-point hike if the inflation picture worsens.
Skyler Weinand, chief investment officer at Regan Capital in Dallas, said: "Tuesday's CPI was stronger-than-expected, which sets the stage for another rate hike in December." Brian Jacobsen, chief economic strategist at Annex Wealth Management, said core CPI was again at 0.3% month on month. Peter Cardillo, chief market economist at Spartan Capital Securities, said a December rate hike was coming, with the question being 25 or 50 basis points.