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Wall St slides as inflation data fuels rate hike bets
Traders raised the odds of an October Federal Reserve rate hike to 46% after September consumer prices accelerated, LSEG-compiled data showed.
- Wall Street indices edged lower on Wednesday after a hotter-than-expected inflation report boosted bets of an interest rate hike, with traders pricing in a 46% chance of a quarter-point increase according to LSEG-compiled data.
- Consumer prices accelerated in September amid a surge in petrol costs, reaching 3.6% and exceeding economist expectations as Americans continued spending, encouraging businesses to raise prices.
- Yields on the 10-year Treasury rose to 5.23% following the inflation data, pressuring homebuilders; Lennar and PulteGroup shares sank 2.8% and 3% respectively on Wednesday.
- Bank of America dropped 6% after reporting weaker profit and setting aside $1.2 billion for regulatory fines, while State Street sank 6.2% after reporting weaker quarterly revenue.
- Brent crude added 1% on Wednesday to $106.71 a barrel after vessels were struck in the Strait of Hormuz, sustaining upward pressure on global yields and inflation concerns.
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Wall Street tumbles as hot inflation data feeds worries about Fed rate hikes
Hotter-than-expected inflation data sent Wall Street tumbling on Wednesday, with worries about more interest rate hikes from the Federal Reserve pummeling shares of Oracle, CoreWeave and other AI stocks sensitive to higher borrowing costs. Increased bets that the Fed will have to further hike rates to tame inflation dealt a sharp blow to some of the market's biggest gainers of 2026. Oracle lost 7.3 percent, while AI-infrastructure firms CoreWeav…
·Seoul, Korea (the Republic of)
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Coverage Details
Total News Sources13
Leaning Left4Leaning Right2Center3Last UpdatedBias Distribution45% Left
Bias Distribution
- 45% of the sources lean Left
45% Left
L 45%
C 33%
R 22%
Factuality
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