U.S. stocks slumped on Tuesday, with the Nasdaq hitting its lowest point in a month as new concerns from the Federal Reserve about inflation helped erase nearly a month of gains.

Minutes of the Federal Open Market Committee’s Dec. 14 meeting, released today, show a number of Fed officials said a drop in productivity growth, a weakening dollar and high oil prices could contribute to inflation. They hinted that interest rates may have to rise to strengthen the dollar and curb inflation.

The Dow ended the day down 98.65 points, or 0.9 percent, to end at 10,630.78 and the Standard & Poor’s 500 Index was off 14 points, or 1.2 percent, at 1,188.04. The Nasdaq Composite Index slipped 44.29 points, or 2.1 percent, to finish at 2,107.86.

The Nasdaq’s loss was the largest one-day percentage decline in 5 months. The index has fallen 3.1 percent in the first two trading days of the year, giving back a third of the gains made in 2004. The Dow Jones Industrial Average has slipped 1.4 percent and the Standard & Poor’s 500 is down nearly 2 percent in the same period.

Among local companies, Guess Inc. jumped 11.4 percent to $13.34 after investors reacted to the L.A.-based apparel maker being raised from “market perform” to “outperform” by a Piper Jaffray analyst.

Health care and laboratory staffing firm On Assignment Inc. gained 2.3 percent to close at $5.27 after naming 10-year company veteran Mike Holtzman as its new executive vice president and chief financial officer. Holtzman will take the position when Ron Rudolph steps down at the end of January.

On the down side, IMPCO Technologies Inc sunk 4.1 percent to $7.05. The alternative fuel systems designer and manufacturer named Mariano Costamagna its chief executive and president. The Cerritos-based company’s is working on purchasing the remaining 50 percent stake in Italian company BRC SR, founded and directed by Costamanga.

And Westlake Village-based Homestore Inc. fell 9.1 percent to $2.71 in slightly higher-than-average volume.