Bryan R Smith/Reuters
- US stocks slipped on Tuesday as investors took in a hot retail sales report.
- Retail sales jumped 0.7% in September from the prior month, more than double forecasts for a 0.3% gain.
- Meanwhile, investors raised their odds of a potential Fed rate hike to come in November.
US stocks slumped on Tuesday as a hot retail sales report stoked fears that interest rates will stay higher-for-longer, sending bond yields up.
Retail sales jumped 0.7% over the month of September, the Commerce Department reported, nearly double the expected 0.3% increase.
A resilient economy raises the odds that the Federal Reserve will continue to hike interest rates or keep rates higher for longer to cool off growth. Investors priced in a 12% chance for a November rate hike as of Tuesday, up from a 5.2% chance priced in yesterday, the CME FedWatch tool shows.