US stocks ease as inflation stays elevated

The US stocks closed lower on Tuesday, as elevated inflation reading hardened expectations for a rate hike from the Federal Reserve next month. The Labor Department said the Consumer Price Index increased 0.4% last month, its third straight gain of 0.4% or more. The 2-year US Treasury yield, which typically moves in step with interest rate expectations for the Fed, surged nearly 20 basis points marking its biggest daily gain since April this year. This weighed on stocks. The S&P 500 index eased 28.46 points, or 0.38%, to end at 7,521.48 points, while the Nasdaq Composite lost 185.90 points, or 0.74%, to 25,067.23. The Dow Jones Industrial Average fell 161.95 points, or 0.31%, to 52,227.80.

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