US stocks slump as bond yields rise after September retail sales blow past estimates

• US stocks slipped on Tuesday as investors took in a hot retail sales report.
• Retail sales jumped 0.7% in September from the prior month, more than double forecasts for a 0.3% gain.

US stocks slumped on Tuesday as a hot retail sales report stoked fears that interest rates will stay higher-for-longer, sending bond yields up.

Retail sales jumped 0.7% over the month of September, the Commerce Department reported, nearly double the expected 0.3% increase.

A resilient economy raises the odds that the Federal Reserve will continue to hike interest rates or keep rates higher for longer to cool off growth. Investors priced in a 12% chance for a November rate hike as of Tuesday, up from a 5.2% chance priced in yesterday, the CME FedWatch tool shows.

The yield on the 10-year US Treasury note surged 12 basis points to trade around 4.83%.

"Consumer spending remains remarkably resilient and is actually accelerating in discretionary categories such as dining and big-ticket items such as new cars," Bankrate senior industry analyst Ted Rossman said in a note.

Here's where US indexes stood as the market opened at 9:30 a.m. on Tuesday:

• S&P 500: 4,342.95, down 0.70%

• Dow Jones Industrial Average: 33,944.85, down 0.12% (36.69 points)

• Nasdaq Composite: 13,408.48, down 1.18%

Here's what else is going on:

• Bernard Arnault lost his slot as the world's second richest man to Jeff Bezos, thanks to tumbling LVMH stock.
• Elite investor John Paulson said his ex-business partner duped him out of millions to fund Louis Vuitton shopping sprees and Las Vegas parties, according to a new lawsuit.
• The S&P 500 is in a historic bubble and could crash 63%, according to markets guru John Hussman.

In commodities, bonds, and crypto:

• Oil prices dropped, with West Texas Intermediate slipping 0.10% to $86.57 a barrel. Brent crude, the international benchmark, fell 0.10% to $89.56 a barrel.
• Gold ticked higher 0.19% to $1,923.71 per ounce.
• The 10-year yield surged 12 basis points to trade at 4.83%.
• Bitcoin climbed 1.39% to $28,316.