Finance

U.S. government bond yields surged higher immediately after the September core inflation metric came in higher than anticipated at 0.3% month-over-month. Short-term yields reacted the most dynamically, with the 2-year Treasury note yield climbing by more than 10 basis points. The data caused market odds for another rate increase this month to double from roughly 20% to 46%.

Bank of America's stock tumbled 7.5% as investors reacted to underwhelming revenue and profit results for the third quarter. The financial firm's performance was further weighed down by a $1.2 billion penalty disclosed by the U.S. Treasury Department over alleged violations of anti-money laundering and sanctions compliance. Other financial institutions like State Street also logged substantial losses due to weak revenue.

Technology and chipmaker stocks continued their recent retreat, dragging heavily on the Nasdaq Composite. Selling pressure in the semiconductor sector was fueled by escalating competition out of Asia, specifically regarding progress updates on a new chip design by China's CXMT. Tech bellwethers like Intel, Micron, and Nvidia all traded significantly lower during the session.