NEW YORK, New York - A spike in inflation put the brakes on U.S.

stocks on Wednesday, as the tech sector in particular posted sharp losses.

"In September, the Consumer Price Index for All Urban Consumers rose 0.6 per cent, seasonally adjusted (SA), and rose 3.7 per cent over the year, not seasonally adjusted (NSA)," the Bureau of Labour Statistics said in a statement Wednesday.

"The index for all items less food and energy rose 0.3 percent in September (SA), up 2.6 percent over the year (NSA)," the statement said.

The 3.7 per cent annualised inflation is well above the Fed's 2 per cent target, pressuring the case for the Fed to push interest rates higher, although probably not in October as the Midterm elections loom.

The Standard and Poor's 500 fell to 7,719.51, down 85.94 points or 1.10 percent, on volume of 3.221B.

The index traded between a low of 6,316.91 and a high of 7,844.52 during the session, with an intraday high of 7,789.15 and a previous close of 7,693.31.

The Dow Jones Industrial Average slipped to 51,622.32, losing 47.78 points or 0.09 percent, on volume of 429.645M.

It moved between 45,057.28 and 54,744.33, touching 51,869.75 intraday against a prior close of 51,365.42.

The NASDAQ Composite posted the steepest decline, closing at 26,692.87, down 511.51 points or 1.88 percent, on volume of 6.53B.

The index ranged from 20,690.25 to 27,722.75, with an intraday high of 27,134.29 and a previous close of 26,602.12.

Dollar Strengthens Against Most Major Currencies Wednesday; Yen Inches Up The U.S.

dollar advanced against most major currencies on Wednesday, while the Japanese yen was the lone exception, inching higher against the greenback.

The euro weakened against the dollar, with EUR-USD last traded at 1.1155, a decline of 0.39 percent.

The Japanese yen was the only major currency to gain ground on the dollar, with USD-JPY at 158.28 a move of 0.03 percent.

The British pound fell against the dollar, with GBP-USD at 1.3190, down 0.49 percent.

The Australian dollar declined against the greenback, with AUD-USD trading at 0.6969, a drop of 0.21 percent.

The Canadian dollar weakened against the U.S.

dollar, with USD-CAD at 1.4243, a rise of 0.19 percent.

The Swiss franc also lost ground against the dollar, with USD-CHF at 0.8348, up 0.26 percent.

Global Markets Mostly Higher Wednesday as European Stocks Extend Gains, Asia Mixed, Canada friendless World stock markets closed mostly higher on Wednesday, with UK and European benchmarks leading the advance while Asian indices finished mixed.

In Canada, the benchmark index fell sharply.

In Canada, the S&P/TSX Composite index fell to 35,584.46, down 399.52 points or 1.11 percent, on volume of 285.882M.

It traded between 29,530.90 and 37,069.10, with a session high of 35,900.65 and a prior close of 35,393.63.

In London, the FTSE 100 rose to 10,724.86, up 74.53 points or 0.70 percent.

The index traded between a low of 9,276.90 and a high of 10,989.50 during the session, against a previous close of 10,641.22, with an intraday high of 10,731.30.

On the continent, Germany's DAX P added 38.71 points, or 0.15 percent, to close at 25,298.61.

It moved between 21,863.81 and 26,618.74, with a session high of....