US STOCKS-Wall St sells off as rate hike expectations rise

martes 17 de mayo de 2016 14:52 GYT

* April consumer prices record biggest gain in over 3 years

* Home Depot falls after results, weighs on Dow, S&P

* AbbVie shares tumble on patent concerns for top drug

* Indexes down: Dow 1.01 pct, S&P 0.96 pct, Nasdaq 1.13 pct (Updates with late afternoon trading)

By Lewis Krauskopf

May 17 (Reuters) - Wall Street sold off on Tuesday as investors boosted chances of an interest rate hike later this year after data pointed to firming inflation, while Home Depot weighed after its quarterly report.

U.S. consumer prices recorded their biggest increase in more than three years in April as gasoline and rents rose. The data pointed to a steady inflation build-up that could give the Federal Reserve ammunition to raise interest rates later this year.

Two Fed policymakers on Tuesday said the central bank could still raise interest rates two or three times this year.

Traders now see the probability of a rate hike after the Fed's November meeting at 55 percent, up from roughly 42 percent on Monday, according to the CME FedWatch tool.   Continuación...