U.S. markets closed lower on Tuesday as a sell-off in Nvidia shares and stronger-than-expected inflation data hardened expectations for a rate hike from the Federal Reserve next month and fueled concerns the central bank may be more aggressive in raising rates. A closely watched report released by the Labor Department showed Consumer prices in the U.S. increased by more than expected in the month of October. The Labor Department said its consumer price index rose by 0.4 percent in October after climbing by 0.6 percent in September. The street had expected consumer prices to rise by 0.3 percent.
On the sectoral front, gold stocks pulled back sharply along with the price of the precious metal, with the NYSE Arca Gold Bugs Index plunging by 5.6 percent after ending the previous session at its best closing level in well over a month. Substantial weakness was also visible among interest rate-sensitive housing stocks, as reflected by the 2.6 percent slump by the Philadelphia Housing Sector Index.
Dow Jones Industrial Average decreased by 157.86 points or 0.30 percent to 52,231.89, Nasdaq fell by 187.26 points or 0.74 percent to 25,065.87 and S&P 500 slipped by 29.01 points or 0.38 percent to 7,520.93.