Updated from 4:07 p.m. EDTStocks closed with losses Tuesday as a spike in wholesale prices and hawkish commentary from a Federal Reserve governor sowed inflation fears. The Dow Jones Industrial Average fell 62.84 points, or 0.61%, to 10,285.26, while the S&P 500 lost 11.96 points, or 1%, to 1178.14. The Nasdaq Composite dropped 14.30 points, or 0.69%, to 2056. The 10-year Treasury was lately up 3/32 in price, yielding 4.48%. The dollar rose against the yen and euro. "Today was a very trying and fear-driven day," said Barry Hyman, equity market strategist with Ehrenkrantz King Nussbaum. "The feel of the market is really bad. You've got all the ingredients -- fear, financial concern, breakdowns in leading sectors. It's all leading us to hopefully where a bottom will be made." About 1.61 billion shares traded on the New York Stock Exchange, with decliners beating advancers by an 8-to-3 margin. Trading volume on the Nasdaq was 1.48 billion shares, with advancers outpacing decliners 2 to 1. The Labor Department's producer price index for September rose 1.9%, surpassing economists' 1.1% estimate. On a core basis stripping out food and energy, the index rose 0.3%, above expectations of a 0.2% rise. "It certainly doesn't alleviate any pressure," said Robert Pavlik, chief investment officer with Oaktree Asset Management. "The Federal Reserve is probably going to use this in their decision to raise rates again. The only positive spin you can put on this is that the data wasn't that far above consensus." At a presentation in Salt Lake City on Tuesday afternoon, San Francisco Fed President Janet Yellen warned that the fed funds rate must come up further before the risk of inflation is neutralized. "I consider it reasonable to put the current neutral rate in the range of 3.5% to 5.5%," said Yellen. "At 3.75%, the current federal funds rate is toward the lower end of this band. This suggests a presumption that the rate will need to be raised further. Indeed, financial markets now appear to expect the funds rate to peak at about 4.5% -- in the middle of this neutral range."