U.S. stocks opened lower Tuesday after the Labor Department reported that consumer prices rose more than expected in October.

The S&P 500 fell about 0.6 percent in early trading, while the Nasdaq Composite dropped 1 percent and the Dow Jones Industrial Average declined roughly 0.3 to 0.5 percent. The declines followed a strong rebound on Monday.

The Consumer Price Index increased 0.4 percent from the prior month, exceeding the 0.3 percent forecast. Core CPI, which excludes food and energy, rose 0.3 percent, also above expectations. The data arrived shortly after Federal Reserve Governor Christopher Waller signaled support for a December rate increase.

Traders responded by lifting bets on tighter policy. Odds of a 25-basis-point hike in December rose sharply, with some probability now assigned to a larger move. Treasury yields climbed, with the two-year note yield surging 15 basis points to 4.69 percent.

The report highlighted ongoing price pressures tied to import tariffs implemented last year and elevated energy costs linked to the U.S.-Israeli conflict with Iran. Inflation remains well above the Fed’s 2 percent target.

Analysts noted that the hotter reading could solidify expectations for at least one rate increase before year-end, reversing some optimism from the prior session’s oil price decline. The dollar strengthened against major currencies as investors adjusted positions.

Markets had rallied Monday on falling oil prices and reduced geopolitical tensions, but Tuesday’s data quickly shifted sentiment toward caution on monetary policy.