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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 1.39%, S&P 500 1.17%, Nasdaq 0.73%

(Updated at 11:30 a.m. ET/1530 GMT)

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 rose slightly in

August, but underlying inflation remained sticky, which could

discourage the Fed from delivering a half-point interest rate

cut next week.

Mark Luschini, chief investment strategist at Janney

Montgomery Scott, said the chances of a 50-basis-point cut seems

to have been "taken off the table ... the core month-over-month

showed acceleration and therefore coming in a little hotter and

that seemed to put the market back on its heels."

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.

All 11 major S&P sectors were trading lower, with financials

the worst hit, down 2%.

Big U.S. lenders extended their declines, sparked by

warnings

of a slower-than-anticipated recovery in investment banking

and an expected hit to interest income from looming rate cuts.

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 13.3%.

Meanwhile, solar stocks Sunrun ( RUN ) and SolarEdge

Technologies ( SEDG ), seen as benefiting from a Harris

administration, rose about 6% 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.

At 11:30 a.m. ET, the Dow Jones Industrial Average

fell 564.48 points, or 1.39%, to 40,172.90, the S&P 500

lost 64.21 points, or 1.17%, to 5,431.46 and the Nasdaq

Composite lost 125.04 points, or 0.73%, to 16,900.84.

GameStop ( GME ) dropped almost 15% 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. Albemarle, one of the

largest lithium miners in the world, jumped 10.3%.

Declining issues outnumbered advancers by a 2.71-to-1 ratio

on the NYSE and by a 2.05-to-1 ratio on the Nasdaq.

The S&P 500 posted six new 52-week highs and 17 new

lows, while the Nasdaq Composite recorded 23 new highs and 107

new lows.