US stocks dropped to their worst day since July on Wednesday, following the latest signal that inflation is getting worse.
The S&P 500 sank 1.1 per cent for a fifth loss in the six days since setting its all-time high. The Dow Jones Industrial Average fell 48 points, or 0.1 per cent, and the Nasdaq composite slid 1.9 per cent as stocks in the artificial-intelligence industry led the way lower.
Stocks felt pressure from rising yields in the bond market, where worries grew after a report said US consumers had to pay prices for fuel, food and other costs of living last month that were 3.7 per cent higher overall than a year earlier.
That means inflation accelerated from its 3.4 per cent rate in August and was worse than the 3.6 per cent that economists expected.