The Dow Jones Industrial Average fell 157.86 points, or 0.30%, to 52,231.89. The S&P 500 lost 29.01 points, or 0.38%, to 7,520.93, and the Nasdaq Composite declined 187.26 points, or 0.74%, to 25,065.87.

Consumer prices rose 0.4% in October from the previous month, extending persistent inflation that had contributed to voters’ sour economic mood in last week’s elections. Treasury yields climbed after the data and comments from Federal Reserve officials. The two-year Treasury yield rose 0.180 percentage point to 4.725%, its largest one-session increase since April 9, 2025. The 10-year yield gained 0.120 percentage point to 4.982%, while the 30-year yield rose 0.093 percentage point to 5.349%.

Before the inflation report, Fed governor Christopher Waller said he would advocate for a half-point rate increase if core consumer inflation was running at 0.3% or higher. October inflation reached that threshold. Dallas Fed President Lorie Logan said the Fed may need to accelerate the pace of interest-rate increases.

Oil and fuel prices continued to fall after the midterm elections, offering some relief from inflation concerns. New York oil futures dropped 81 cents, or 0.9%, to $86.04 a barrel as traders awaited possible changes in Iran policy. The average U.S. gasoline price fell below $4 a gallon, according to AAA. The dollar strengthened against major rivals, testing multiyear highs, while gold futures fell $84.30, or 2.1%, to $4,020.70 a troy ounce.

Anthropic is targeting a $1.3 trillion valuation in its imminent initial public offering, a figure that would place the maker of the Claude AI model among the world’s 20 largest companies by market capitalization. The target is below the rumored $2 trillion valuation it had pursued before a recent AI scare in public markets.