US stocks slide as inflation data shows prices continue to rise at the fastest rate in decades

• US stocks tumbled after inflation data showed prices continued to rise at the fastest rate in decades.
• The CPI gained 0.9% in October, higher than the 0.6% estimated by economists surveyed by Bloomberg.
• The yield on 10-year Treasury rose to 1.476% compared to Tuesday's 1.431%.

US stocks slid Wednesday after inflation data showed that prices are rising at the fastest rate in decades.

The benchmark S&P 500 edged lower after ending an eight-day winning streak in the previous session - its longest run since 1997. The Dow Jones Industrial Average and the tech-heavy Nasdaq-100 also slipped.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Wednesday:

• S&P 500: 4,663.95, down 0.45%
• Dow Jones Industrial Average: 36,293.97, down 0.07% (26.01 points)
• Nasdaq Composite: 15,723.39, down 1.03%

The Consumer Price Index - a key measure of nationwide inflation - gained 6.2% on a year-over-year basis, the fastest rate of annual inflation since 1990. It also showed price growth picking up from September's one-year pace.

CPI rose 0.9% in October, higher than the 0.6% estimated by economists at Bloomberg. The reading marks an acceleration from the 0.4% gain seen in September and the largest one-month jump since 2008.

"While supply chain disruptions and labor shortages won't last forever, the bigger question is to what extent these factors affect wage inflation and housing inflation, which are stickier parts of the overall inflation picture and can be slower to reverse," Nancy Davis, founder of Quadratic Capital Management, said in a statement.

If inflation doesn't subside, Davis, who is also portfolio manager of the Quadratic Interest Rate Volatility and Inflation Hedge ETF, said the central bank may need to taper at a quicker pace and hike interest rates. This, she said, could hurt stocks and bonds.

Still, she said that CPI is just one measure of inflation. A significant portion of its calculation is comprised of shelter, mainly rental prices in cities, which is not the most comprehensive view of inflation, she added.

Equities have been boosted by strong third-quarter earnings despite headwinds such as supply-chain constraints, persistent labor shortages, and rising inflationary pressures.

The yield on 10-year Treasury notes rose to 1.476% Wednesday compared to Tuesday's 1.431%. Bond yields and prices move inversely.

Coinbase Global stock slipped 11% Wednesday after the largest cryptocurrency exchange in the US reported third-quarter earnings that missed Wall Street's expectations.

In cryptocurrencies, bitcoin slipped below $67,000 after hitting new highs, while litecoin is on track for a 30% weekly gain.

Oil prices rose. West Texas Intermediate crude oil jumped 0.17% to $84.29 per barrel. Brent crude, oil's international benchmark, climbed 0.18% to $84.93 per barrel.

Gold edged higher by as much as 1.31% to $1,853.61 per ounce.