US Stocks Slide as Hot CPI Lifts Yields and Rate-Hike Bets
September CPI rose 3.7% year over year, above the 3.6% forecast and up from 3.4% in August. By midday, the Nasdaq 100 was down 1.0%, the S&P 500 fell 0.7%, and the 2-year Treasury yield had risen 14 basis points to 4.93%.
0% and semiconductors extending their losing streak to a seventh straight session. 1% on the month. 6%. Treasury yields climbed in response.
S. 75. Markets now assign a 45% chance of a further Fed rate hike at the Oct. 28 meeting.
White House economic adviser Kevin Hassett said earlier Wednesday that "this month's core inflation was a blip," adding that more data is needed before the Fed decides on rates. S. equity markets by midday Wednesday, losses were concentrated in technology and rate-sensitive areas, while defensive health care names provided a cushion. 1%, or 46 points, to 51,624.
Gains in UnitedHealth Group Inc. 5%), Amgen Inc. 2%) and Merck & Co. Inc.
8% drop in Caterpillar Inc. 9% decline in Nvidia Corp. (NASDAQ: NVDA ). 0% to 30,265.
Within Magnificent Seven stocks, Meta Platforms Inc. 9% and Tesla Inc. 8%, while Apple Inc. 1% gain.
In chips, Advanced Micro Devices Inc. 5%, Broadcom Inc. 7% and Micron Technology Inc. 6%.
3%. Gold retreated as the stronger dollar and higher real yields weighed. 36. 7%.
1%. 0%. 3%. 6% gain.
2%. 6%. 2%. 8%.
S. 7% as mortgage-sensitive stocks reacted to higher yields. 3% for a seventh straight session, leaving it nearly 10% below its Oct. 2%.
3%. In Russell 1000 gainers, the bid was led by drug and biotech names. Halozyme Therapeutics Inc. 2% and Eli Lilly and Co.
2% and AbbVie Inc. 0%. The moves look like a sector-wide rotation into defensives. GlobalFoundries Inc.
-Japan initiative, according to a company press release. Caris Life Sciences Inc. 8%. On the Downside AI infrastructure financing names were hit hardest.
CoreWeave Inc. 8% as a bond yield touching 15% and a "Yikes" reaction from Elon Musk weighed on the stock. TeraWulf Inc. 3% and DigitalOcean Holdings Inc.
0%, trading in sympathy with CoreWeave and other neocloud peers such as IREN Ltd. 5%. Fermi Inc. 3%, giving back part of Tuesday's 14% surge on AMD credit support for its Project Matador.
Affirm Holdings Inc. 2 as rate-sensitive fintechs sold off, with SoFi Technologies Inc. 2% and Robinhood Markets Inc. 2%.
Elsewhere, Dell Technologies Inc. 2% and Oracle Corp. 5%, while Bank of America Corp. 2 billion money-laundering penalty drove an earnings miss.
Wednesday's Russell 1000 Top Gainers Name % change Halozyme Therapeutics, Inc. 22% GLOBALFOUNDRIES Inc. 00% Caris Life Sciences, Inc. 36% Amgen Inc.
19% Wednesday's Russell 1000 Top Losers Name % change CoreWeave, Inc. 82% DigitalOcean Holdings, Inc. 96% TeraWulf Inc. 33% Fermi Inc.
27% Affirm Holdings, Inc. 20% Image: Shutterstock