US stocks mixed as CPI pushes Treasury yields up

US stocks were mixed and Treasury yields rose in early Wednesday trading after data showed consumer inflation accelerated more than expected in September.

The consumer price index rose 3.7% from a year earlier in September, the Labor Department said. Analysts cited by MarketWatch had forecast 3.6%.

The S&P 500 fell 0.3% to 7,783 in early trading, while the Nasdaq Composite dropped 0.4% to 27,130. The Dow Jones Industrial Average rose 0.4% to 51,854.

The yield on the 10-year Treasury note rose to 5.32% from 5.21% on Tuesday. Yields on other bonds also rose.

Futures markets showed more than 50% odds of a Federal Reserve interest rate increase in October, compared with about 22% on Tuesday.

Sam Stovall of CFRA Research said the inflation data increased the odds of an imminent rate increase, though he thought a move was more likely in December than October. He said higher interest rates reduce the value investors assign to future earnings and cash flows.

Bank of America shares fell more than 7% after US agencies fined the lender $1.2 billion for violating anti-money-laundering laws. The penalty lowered quarterly earnings after rival banks reported increased profits on Tuesday.