As the chorus of Fed hikes grows louder, stocks and bonds decline — US Market Wrap

Wall Street doubled down on wagers that the Federal Reserve will need to raise interest rates more aggressively, with stocks and bonds dropping as officials issued fresh warnings about inflation. A surprise robust consumer price index reinforced speculation that a quarter-point hike in December is a done deal, with money markets predicting an even higher move. Short-dated Treasuries received the brunt of the selling, pushing two-year rates to their lowest point since April 2025. The S&P 500 has ceased its consecutive rise. The dollar climbed. Fed's Waller has warned that a half-point rate hike in December may be necessary. That was followed by a speech by Fed's Logan, who supported at least two more quarter-point raises, adding that they may be required at a faster rate than officials have moved this fall. Anthropic is unveiling a package of tools that integrate the company's artificial intelligence capabilities into ordinary office tasks, putting it in direct rivalry with two of its backers: Microsoft and Alphabet's Google. In its initial public offering, the company expects to be valued at around $1.4 trillion.