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August YoY CPI at 2.5% vs 2.6% estimate

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Trump Media & Technology ( DJT ) shares slide

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Indexes down: Dow 1.15%, S&P 500 0.63%, Nasdaq 0.02%

(Updated at 9:49 a.m. ET)

By Shashwat Chauhan and Lisa Pauline Mattackal

Sept 11 (Reuters) - Wall Street's main indexes fell on

Wednesday after latest inflation numbers hit expectations of a

bigger interest rate cut by the Federal Reserve, while odds of

Democrat Kamala Harris winning the U.S. presidency rose

following a televised debate.

Consumer prices in the United States increased marginally in

August, but underlying inflation showed some stickiness, which

could discourage the Fed from delivering a half-point rate cut

next week.

"The Fed would have liked to have seen softer numbers in

order to justify a potential 50-basis point cut at the upcoming

meeting ... but this (data) probably makes it more likely that

they proceed with a 25-bps cut," Jason Pride, chief of

investment strategy and research at Glenmede, said.

The consumer price index (CPI) increased 0.2% last month

after climbing 0.2% in July, the Labor Department's Bureau of

Labor Statistics said.

The core figure, excluding volatile food and energy

components, rose 0.3% on a monthly basis against forecasts of a

0.2% rise.

Traders now see an 85% chance of the Fed cutting interest

rates by 25 basis points, according to CME's FedWatch.

Market sentiment was also driven by political developments

after Harris put her Republican rival Donald Trump on the

defensive in a combative presidential debate on Tuesday.

After the debate, pricing for a Trump victory slipped by 6

cents to 47 cents on online betting site PredictIt, while

climbing to 57 cents from 53 cents for a Harris win.

Stocks expected to perform well under a Trump presidency

fell, with cryptocurrency and blockchain-related shares and

prison operators lower. Trump Media & Technology Group ( DJT )

slumped 17%.

Meanwhile, solar stocks Sunrun ( RUN ) and SolarEdge

Technologies ( SEDG ), seen as benefiting from a Harris

administration, rose more than 7% each.

While the debate offered Wall Street little clarity on key

policy issues, some market watchers see Harris' proposals to

raise the corporate tax rate as likely to hit company profits,

while Trump's tougher stance on tariffs could stoke inflation.

Chip stocks kept Nasdaq's losses in check. The Philadelphia

SE Semiconductor index rose 1.2%, led by a 3.5% jump in

the shares of industry heavyweight Nvidia ( NVDA ).

At 09:49 a.m. ET, the Dow Jones Industrial Average

fell 448.74 points, or 1.15%, to 40,281.08, the S&P 500

lost 32.33 points, or 0.63%, to 5,463.19, and the Nasdaq

Composite lost 1.73 points, or 0.02%, to 17,023.12.

Among other stocks, GameStop ( GME ) dropped 12.3% after the

videogame retailer said it had filed for an offering of up to 20

million shares and reported lower second-quarter revenue.

Shares of lithium miners jumped after Chinese battery giant

CATL said it plans to make adjustments to lithium

carbonate production in Yichun based on recent market

conditions. Albemarle, one of the largest lithium miners

in the world, jumped 13.5%.

Declining issues outnumbered advancers for a 2.43-to-1 ratio

on the NYSE and a 1.76-to-1 ratio on the Nasdaq.

The S&P 500 posted five new 52-week highs and five new lows,

while the Nasdaq Composite recorded 55 new lows.