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  • 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.

The yield on the 10-year US Treasury note surged 12 basis points to trade around 4.83%.

"Consumer spending remains remarkably resilient and is actually accelerating in discretionary categories such as dining and big-ticket items such as new cars," Bankrate senior industry analyst Ted Rossman said in a note.

Here's where US indexes stood as the market opened at 9:30 a.m. on Tuesday: 

Here's what else is going on: 

In commodities, bonds, and crypto: 

Read the original article on Business Insider