The S&P 500 pulled back on Wednesday, pressured by a move higher in Treasury yields, as investors reacted to hotter-than-expected September consumer inflation data.
The broad market index was down 0.4%, while the Nasdaq Composite shed 0.7%. The Dow Jones Industrial Average outperformed, however, rising 102 points, or 0.2%.
The consumer price index rose 0.6% in September month over month, with its year-over-year gain coming in at 3.7%. While the former was in line with expectations, the latter was hotter than expected, as economists polled by Dow Jones had anticipated a 3.6% advance on the year.
Excluding food and energy prices, core CPI posted a monthly and yearly advance of 0.3% and 2.6%, respectively. Both were also slightly higher than the increase of 0.2% and 2.5% that economists had expected.
Treasury yields jumped following the report, with the 10-year Treasury yield up more than 7 basis points at 5.293% and the 30-year Treasury yield up more than 4 basis points at 5.609%. Both had hit new 24-year highs last week.