Stocks Turn Lower as AI, Tech Shares Slump
A hotter-than-expected September inflation report has put a dampener on the mood in markets today.
Stocks are lower in afternoon trading, with the Nasdaq bearing the brunt of the declines, down 1.6%, and the Dow industrials trading about 0.3% lower. Treasury yields rose sharply in the morning, but are now mixed on the day after slipping from those levels.
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In tech, semiconductor shares are getting hit hard, with the PHLX Semiconductor Index off 4% and names like Oracle, Marvell, CoreWeave and Advanced Micro Devices down more.
Earlier today, the consumer price index rose 3.7% in September from an annual rate of 3.4% in August. Economists polled by the Wall Street Journal had expected a 3.6% increase. Core inflation, which excludes volatile food and energy costs, also topped economists’ forecasts.
The data raises pressure on the Federal Reserve to consider further interest-rate increases to tame inflation, which is sitting well above its 2% target.
Investors are also dissecting a fresh round of earnings from Wall Street. Bank of America shares are tumbling after its profit disappointed even excluding a $1.2 billion fine, while Morgan Stanley’s and BlackRock’s shares are also lower despite stronger quarterly results.
Write to Chelsey Dulaney at chelsey.dulaney@wsj.com