Stocks were falling Wednesday after recent consumer price data revealed that prices had risen to their highest level in three decades. The Dow Jones Industrial Average fell 257 points, or 0.71%, to 36,062, the S&P 500 slipped 0.97%, while the tech-heavy Nasdaq was down 1.85%. On Tuesday, stocks snapped their record winning streak of eight consecutive all-time highs. The Consumer Price Index marked a 0.9% increase in October, reflecting a 6.2% year-over-year increase, the fastest since 1990 and exceeding analyst estimates of 5.9%. Changes in the CPI are used to assess shifts in the cost of living. Ryan Detrick, chief market strategist for LPL Financial, said “inflation remains stubbornly high, to the surprise of many that expected prices to come back to earth sooner.” “The truth is you can’t shut down a $20 trillion economy and not feel some bumps as it restarts,” he said, “but we are hopeful the supply chain issues will resolve over the coming quarters and inflation should calm down as well.” The 10-year Treasury yield rose 1.02% following the release of the CPI. Cliff Hodge, chief investment officer for Cornerstone Wealth, noted that below the surface, over 80% of CPI subcomponents were above 2%, the highest since 1991, “which indicates broader price increases, not only related to reopening.” “The bond market is telling you that the Fed is way behind the curve on policy, as short rates rocketed while long rates have taken the release in stride,” Hodge said. “A flattening curve does not portend well for risk assets into next year. “ NN: This is the first little tremor warning about the earth quake that is coming. The FED and MARKETS have no idea the forces at work here.. Things have now gone to far with ZERO interest rates and endless stimulation. As you are seeing they have created enormous bubbles in stocks, real estate and have completely turned valuations in debt markets on their ass. They are past the point of no return…… Even when they see the proof of run away embedded inflation they are in denial. They shut down a 20 trillion dollar economy. They not only bent it, reality is they broke it….