Nasdaq Falls 1.88% After Hotter-Than-Expected Inflation Report
U.S. stocks closed lower Wednesday after September CPI rose 3.7% year over year, above the 3.6% forecast and August’s 3.4%. The Nasdaq Composite fell 1.88% to 26,692.87; the S&P 500 dropped 1.11% to 7,718.94, while the Dow lost about 49 points to 51,621.48.
The CNN Money Fear and Greed index showed a further deterioration in overall market sentiment, remaining in the “Fear” zone on Wednesday. S. stocks finished lower, with the Nasdaq Composite falling more than 500 points during the session after inflation data was released. The hotter-than-expected September report strengthened bets that the Federal Reserve will continue raising rates, while semiconductor stocks extended their losing streak to a seventh straight session.
4% in August. 6%. Bank of America Corp. (NYSE: BAC) shares fell around 5% on Wednesday after the bank reported disappointing third-quarter 2026 results.
Most S&P 500 sectors ended lower, with information technology, consumer discretionary and communication services posting the steepest declines. Health care and consumer staples stocks bucked the broader market, closing higher. 48 on Wednesday. 87 during Wednesday’s session.
Investors are waiting for earnings from Charles Schwab Corporation (NYSE: SCHW), US Bancorp (NYSE: USB) and PNC Financial Services Group Inc. (NYSE: PNC) today. The index’s reading was 32 on Wednesday, keeping it in the “Fear” zone, compared with 44 previously. The CNN Business Fear & Greed Index measures prevailing market sentiment.
It is based on the premise that greater fear weighs on stock prices, while greater greed has the opposite effect. The index uses seven equally weighted indicators and ranges from 0 to 100, with 0 representing maximum fear and 100 indicating maximum greed.