{"id":6503,"date":"2026-10-15T00:39:05","date_gmt":"2026-10-15T00:39:05","guid":{"rendered":"https:\/\/digitalmarkettrends.com\/index.php\/2026\/10\/15\/nasdaq-closes-1-8-lower-as-as-hotter-cpi-fuels-fed-rate-hike-fears\/"},"modified":"2026-10-15T00:39:05","modified_gmt":"2026-10-15T00:39:05","slug":"nasdaq-closes-1-8-lower-as-as-hotter-cpi-fuels-fed-rate-hike-fears","status":"publish","type":"post","link":"https:\/\/digitalmarkettrends.com\/index.php\/2026\/10\/15\/nasdaq-closes-1-8-lower-as-as-hotter-cpi-fuels-fed-rate-hike-fears\/","title":{"rendered":"Nasdaq closes 1.8% lower as as hotter CPI fuels Fed rate hike fears"},"content":{"rendered":"
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US stocks closed lower on Wednesday as hotter-than-expected inflation data increased expectations of further Federal Reserve interest rate hikes, weighing on technology shares and other rate-sensitive investments.<\/p>\n

The S&P 500 fell 1.08% to 7,721.49, while the Nasdaq Composite dropped 1.85% to 26,701.48. <\/p>\n

The Dow Jones Industrial Average declined 0.09%, or 45.23 points, to 51,624.87, with gains in healthcare stocks helping limit its losses.<\/p>\n

Investors also assessed quarterly results from major US banks, while concerns about rising borrowing costs and debt-financed artificial intelligence infrastructure spending added pressure to the technology sector.<\/p>\n

Hotter US CPI data raises Fed rate hike expectations<\/h2>\n

The US consumer price index rose 0.6% month-on-month in September<\/a>, while annual inflation accelerated to 3.7%, above economists’ expectations of 3.6%.<\/p>\n

Core CPI, which excludes food and energy, increased 0.3% during the month and 2.6% over the year. Both readings exceeded forecasts of 0.2% and 2.5%, respectively.<\/p>\n

Rising gasoline prices accounted for more than half of the monthly increase in headline inflation, while price pressures also broadened beyond energy.<\/p>\n

The data increased concerns that the Federal Reserve may need to maintain tighter monetary policy for longer or raise interest rates again. <\/p>\n

According to CME’s FedWatch tool, traders priced in a 32.7% probability of an October rate hike, up from 22% on Tuesday.<\/p>\n

The prospect of higher borrowing costs weighed on equities, particularly companies whose valuations depend on future growth and continued access to financing.<\/p>\n

Despite Wednesday’s decline, the S&P 500 remained more than 12% higher in 2026 after reaching a record high the previous week. <\/p>\n

However, the median stock in the index had gained just 4% for the year, while more than 200 components were in negative territory.<\/p>\n

AI stocks and chipmakers extend their losses<\/h2>\n

Technology shares led the market decline as investors reassessed the outlook for artificial intelligence investments amid rising interest rate expectations and concerns about debt-funded infrastructure expansion.<\/p>\n

Oracle shares fell around 9%, while CoreWeave plunged more than 16%<\/a>. Nebius also declined as investors reduced exposure to AI infrastructure companies sensitive to higher borrowing costs.<\/p>\n

Chipmakers extended their recent losses. Advanced Micro Devices<\/a> fell 5%, while Intel and SanDisk each declined 4%. Micron Technology dropped 3%<\/a>.<\/p>\n

The Philadelphia Semiconductor Index fell for a sixth consecutive session, marking its longest losing streak since May 2025.<\/p>\n

Dell and Hewlett Packard Enterprise also declined<\/a> after Barclays downgraded both AI server manufacturers to Equal Weight from Overweight.<\/p>\n

The sell-off highlighted growing investor scrutiny of the financing required to support AI infrastructure expansion, particularly among companies outside the largest technology firms.<\/p>\n

Bank stocks fall as BofA and Morgan Stanley decline<\/h2>\n

Financial stocks also weighed on the market following quarterly earnings announcements from major US lenders.<\/p>\n

Bank of America shares dropped 5% after its third-quarter revenue missed expectations. The bank’s profit was also hurt by provisions for more than $1.2 billion in regulatory penalties linked to failures in detecting potentially suspicious transactions.<\/p>\n

Morgan Stanley shares fell<\/a> nearly 4% despite reporting quarterly results that exceeded expectations, supported by stronger equity trading performance.<\/p>\n

The S&P 500 Banks Index declined to its lowest level in more than four months, reflecting pressure across the sector.<\/p>\n

Elsewhere, Bending Spoons shares rallied<\/a> after Berkshire Hathaway invested another $330 million in the Italian technology company, adding to its previous $600 million investment. <\/p>\n

The move brought Berkshire’s total investment to $930 million and its stake to approximately 4%.<\/p>\n<\/p>\n

The post Nasdaq closes 1.8% lower as as hotter CPI fuels Fed rate hike fears<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

US stocks closed lower on Wednesday as hotter-than-expected inflation data increased expectations of further Federal Reserve interest rate hikes, weighing on technology shares and other rate-sensitive investments. The S&P 500 fell 1.08% to 7,721.49, while the Nasdaq Composite dropped 1.85% to 26,701.48. The Dow Jones Industrial Average declined 0.09%, or 45.23 points, to 51,624.87, with […]<\/p>\n","protected":false},"author":1,"featured_media":6504,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-6503","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/posts\/6503","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/comments?post=6503"}],"version-history":[{"count":0,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/posts\/6503\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/media\/6504"}],"wp:attachment":[{"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/media?parent=6503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/categories?post=6503"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/tags?post=6503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}