Stock market today: Dow gains, S&P 500, and Nasdaq decline on hot inflation data
Stocks were mixed on Wednesday as investors digested hotter-than-expected inflation data, and bank earnings continued to roll in.
The Dow Jones Industrial Average (^DJI) gained 0.2%, the S&P 500 (^GSPC) declined 0.4%, and the Nasdaq Composite (^IXIC) fell 0.7% after stocks staggered lower on Tuesday.
September’s Consumer Price Index (CPI) rose 3.7% year over year, versus 3.6% expected by economists. Higher gas and energy prices drove inflation higher, with month-over-month prices rising 0.6%, in line with estimates.
26,960.82 -243.56 (-0.90%)
As of 10:30:29 AM EDT. Market Open.
^IXIC ^DJI ^GSPC
Stocks attempted to recover from a global chip sell-off, with a rebound in South Korea after KOSPI index (^KS11) declined 12% over the past five days. Chip equipment maker ASML (ASML) on Wednesday posted record third quarter sales and raised its full-year outlook amid strong AI demand. Investors await Taiwan Semiconductor earnings on Thursday (TSM) for further confirmation of the AI boom.
Elsewhere, the parade of financial company earnings continued with results from Bank of America (BAC) and Morgan Stanley (MS). Bank of America stock sank 7% as a $1.2 billion regulatory penalty and a slowdown in its Wall Street machine dented lending income. Meanwhile, BlackRock (BLK) shares rose after third quarter earnings beat analyst expectations. The reports follow several investment banking earnings reports on Tuesday, indicating that consumers are holding up despite higher interest rates, among other signals.
Brent crude futures (BZ=F), the global benchmark, remained above $105 per barrel as Houthis continued to bomb Saudi Arabian energy facilities.
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Netflix stock loses gains after report of job cuts, FIFA deal
Netflix (NFLX) stock lost early gains on Wednesday, following a Wall Street Journal report that the streaming giant was cutting roughly 6% of its workforce.
The cuts are expected to be in product, tech, legal, and Human Resources, according to an email from co-CEOs Greg Peters and Ted Sarandos, cited by Bloomberg.
On Tuesday, the streaming giant announced it had secured the exclusive rights in Spain and Andorra to the FIFA World Cup 203, bringing all 104 soccer matches live to Netflix.
Netflix stock has lagged this year, tumbling 25% since the beginning of 2026. The company, which made a bid to purchase Warner Bros (WBD), withdrew the offer after Paramount’s Skydance (SKYD) offered more money for the media giant.
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Stocks mixed after hot inflation data
The Nasdaq Composite (^IXIC) and S&P 500 (^GSPC) declined after hotter-than-expected September inflation data.
Thge Dow Jones Industrial Average (^DJI) rose 0.2% while tech stocks declined as the 10-year Treasury yield gained after prices increased 3.7% on an annualized basis in September, higher than the 3.6% expected by economists.
51,689.91 +19.81 (+0.04%)
As of 10:30:28 AM EDT. Market Open.
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Consumer Price Index comes in hotter than expected for September
September’s Consumer Price Index (CPI) came in at 3.7% versus 3.6% expected by economists.
Month-over-month prices rose 0.6%, in line with expectations. Core CPI, which strips out food and energy costs, rose 2.6% as compared to estimates of 2.5%.
Economists anticipated that higher gas and energy prices would drive inflation higher in September. A hotter-than-expected inflation print could put an October Fed rate hike back in play, experts cautioned.
Roughly 78% of investors expect the Fed to hold rates steady at its upcoming meeting, according to CME FedWatch.
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Bank of America Q3 profit tumbles 17% as deals, trading revenue fall
Yahoo Finance’s David Hollerith reports:
Bank of America said Wednesday that its third quarter profit fell 17% from a year earlier as $1.2 billion regulatory penalty and a slowdown in its Wall Street machine dented higher lending income.
Bank of America’s (BAC) stock fell more than 3% in premarket trading.
The nation’s second biggest bank reported Q3 net income of $6.93 billion, or $0.91 per share, compared with the $1.10 per share analysts expected. “Excluding the regulatory penalty, Bank of America said it earned $8.1 billion, or $1.08 per share, with adjusted earnings per share rising 4% from a year earlier.
Revenue rose 3% to $30 billion, compared with expectations of roughly $30.6 billion.
Read more here.
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