Inflation, AI Fears Drive US Stock Selloff
16 sourcesUpdated Oct 14, 20261 min read
September CPI rose 3.7% year over year, the Bureau of Labor Statistics reported, up from 3.4% in August. Core CPI rose 2.6% year over year and 0.3% month over month, both above forecast, after gasoline jumped 9.1% on the month and energy prices rose 20.4% over the year. Headline CPI rose 0.6% month over month, matching expectations. The S&P 500 fell 1.1% to 7,718.94, the Nasdaq Composite fell 1.9% to 26,692.87, and the Dow fell 0.09% to 51,621.48, with tech and chip stocks leading the drop. The 10-year Treasury yield hit 5.329% before reversing to 5.185%. CoreWeave's bond yield rose above 15%, called distress-level by Bloomberg. Fed's Goolsbee called the reading "discouraging" and said a 4% core inflation trend is "not acceptable"; Bowman said there was no urgency for further rate action; Barkin said the print was higher than he hoped. Bank of America, BlackRock and Morgan Stanley reported Q3 earnings. WTI rose 1.01% to $95.09; Brent rose 0.38% to $106.09. CONTESTED: Left-leaning coverage frames an inflation-led plunge that lifts Fed hike odds and deepens a chip rout; right-leaning coverage pairs hot CPI with tech woes and cites a 1.6% Nasdaq slide, versus the 1.9% Nasdaq Composite close reported elsewhere. The 3.7% CPI print itself is uncontested.
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Center· 3 sources
“U.S. Stocks Fall On Hot Inflation Report, AI Sell-Off”Right· 2 sources
Chipmakers are getting hit because all that borrowed money for data centers may not pay off fast enough despite the demand.
Inflation at 3.7 percent plus the Iran war driving up fuel costs means the Fed will probably hike rates again soon.
