LIVE MARKETS — CPI, mortgage rates, rate hike bets are all on the rise
All three major US stock indexes red; Nasdaq off the most, down ~1% Tech weakest S&P 500 sector; healthcare leads gainers Euro STOXX 600 index up ~0.4% Dollar rallies; US crude up ~1%; gold down ~1.5%; bitcoin down ~2% US 10-year Treasury yield rises to ~5.26% Welcome to the home for real-time coverage of markets brought to you reporters. You can share your thoughts with us at Cpi, Mortgage Rates, Rate Hike Bets Are All On The Rise Things are looking up. And by "things" I mean consumer prices, mortgage rates and the probability of Fed rate hikes. The Labor Department's Consumer Price Index (CPI), which tracks the prices urban consumers pay for a basket of goods and services, grew by 0.6% in September, heating up from August's 0.4% print, as expected. Year-over-year, CPI posted a 3.7% increase, an acceleration from the prior month's 3.4% growth, and a tad hotter than the 3.6% consensus. Core CPI, which strips out volatile food and energy prices and is often referred to as "underlying inflation," printed on monthly and annual bases at 0.3% and 2.6%, respectively. Both readings were higher than analyst expectations. It's the second take on May inflation, after Friday's cool
26% Welcome to the home for real-time coverage of markets brought to you reporters. You can share your thoughts with us at Cpi, Mortgage Rates, Rate Hike Bets Are All On The Rise Things are looking up. And by "things" I mean consumer prices, mortgage rates and the probability of Fed rate hikes. 4% print, as expected.
6% consensus. 6%, respectively. Both readings were higher than analyst expectations. It's the second take on May inflation, after Friday's cooler-than-expected wage growth data, which we'll get to in a minute.
"The inflation news this morning is not comforting by any means. It shows that inflation did accelerate from the previous month and remains a problem for the Fed," Peter Cardillo, chief market economist at Spartan Capital Securities, tells Reuters. " Indeed. 1% just yesterday, according to CME's FedWatch tool.
7% on Tuesday. 1% surge at the gasoline pump. 2% since September 2025. 9% year-on-year.
4% in the last 12 months. 4%. 2%, well north of annual core inflation. "The pass-through of higher energy costs into other 'core' items may be occurring more rapidly than previously thought," writes Stephen Coltman, head of macro at 21shares.
" Back to wage inflation, briefly. Consumer wages have been running cooler than consumer prices for six months now, putting so-called "real wages" in the red. That is a worrisome trend; consumer spending accounts for about 70% of the US economy. Once consumers visit the gas station, they have a lot less left over to spend on other things.
Crossing the street to the housing market, the mortgage game is dancing a familiar tango: borrowing costs advance as demand retreats. 50%. That's the highest it's been since November 2023. 0%.
4% lower. 7% last week. With the 30-year fixed rate soaring north of 6% for over four years now, would-be homeowners are resorting to riskier adjustable-rate mortgages, the popularity of which fueled the housing bubble, a precursor to the Great Recession of 2007 to 2009. "Borrowers continue to rely more on ARM loans to help lower their monthly payments," says Joel Kan, CMB, MBA’s vice president and deputy chief economist.
08 percentage points above where it was during the same week a year ago. 0%. (Stephen Culp) *** Earlier On Live Markets: Rising Consumer Prices, Oil And Treasury Yields Send S&p 500, Nasdaq Lower Click Here S&p 500 Futures Red After Hot Cpi Data Pushes Yields Higher Click Here Euro/yen Shorts On Japan Investor Oat Sales Overdone, Says Ubs Click Here What If Republicans Lose Both Chambers? Click Here Rbc Rotates Into Healthcare, Trims Us Tech Exposure Click Here Who’s Betting On An Earnings Boost For Us Stocks?
Click Here Stoxx Gains, Morgan Stanley Talks Up Earnings Click Here Before The Bell: Europe Eyes Firmer Start, Tech Looks Shaky Click Here Let The Doves Sing Click Here Inflation gauges Real wage growth Mortgage rates, demand