NEW YORK, Oct. 10 (Xinhua) -- U.S. stocks ended lower on Thursday, after a hotter-than-expected consumer inflation report added uncertainty to the Federal Reserve's upcoming interest rate decision in November.
The Dow Jones Industrial Average fell 57.88 points, or 0.14 percent, to 42,454.12. The S&P 500 sank 11.99 points, or 0.21 percent, to 5,780.05. The Nasdaq Composite Index shed 9.57 points, or 0.05 percent, to 18,282.05.
Eight of the 11 primary S&P 500 sectors ended in red, with real estate and communication services leading the laggards by dropping 0.89 percent and 0.61 percent, respectively. Meanwhile, energy and materials led the gainers by going up 0.79 percent and 0.21 percent, respectively.
The U.S. consumer price index (CPI) rose by 0.2 percent for September, bringing the annual inflation rate to 2.4 percent, the Labor Department reported Thursday. While the annual inflation rate dipped from August's 2.5 percent to its lowest level since February 2021, core inflation, which excludes food and energy, increased by 0.3 percent month on month, with the yearly rate reaching 3.3 percent. Both core readings were also marginally higher than forecast.
Additionally, a separate report showed weekly jobless claims reaching a 14-month high, signaling potential softness in the labor market, though the increase may largely be tied to disruptions from recent hurricanes and strikes. The 10-year U.S. Treasury added as much as 4 basis points on Thursday to hit 4.1 percent for the first time since late July.
"The overall trend is what's important, not the day-to-day fluctuations," Chicago Fed President Austan Goolsbee said Thursday. "The overall trend over 12, 18 months is clearly that inflation has come down a lot, and the job market has cooled to a level which is around where we think full employment is."
Amid the shifting dynamics, traders are now assigning an 18 percent probability that the Fed will keep rates steady in November, according to the CME FedWatch tool. This marks a notable change from just a week ago when the chances of no cut were at zero, as markets had been aligned with policymakers' guidance, anticipating a 25 basis point rate reduction.
